Aave's AAVE token has declined 3.07% over the last 24 hours to $69.40. Despite the short-term pullback, AAVE still exhibits some underlying technical strengths.

Trading Volume Remains Solid

Despite the 3.07% single-day drop, AAVE saw $40.83 million in trading volume over the past 24 hours. This healthy volume indicates ongoing interest in trading AAVE across exchanges.

Market Dominance Intact

With a market capitalization of $1.01 billion, AAVE remains the 39th largest cryptocurrency by market cap. Its dominance sits around 0.08%, unchanged over the past month. This shows AAVE maintaining relative strength.

Monitoring Potential Support at $65

Technically, AAVE has found support around $65 on multiple occasions over the past couple months. Now with this pullback, it will be important to see if $65 continues acting as support. If so, this could signal a bottom forming.

Longer Term Technicals Still Bearish

Despite potential support at $65, AAVE remains in a broader downtrend, having declined 18.97% over the past 6 months. The longer term technical outlook remains bearish, even if $65 leads to a bounce.

Bottom Line

While AAVE's price has dipped 3.07% in the past day, key indicators like volume and market dominance point to ongoing technical strength. However, the longer-term downtrend remains intact, despite potential support at $65.

Should You Buy the Dip on Aave?

With AAVE down around 3% in the past 24 hours, some investors may view this as an opportunity to buy the dip. Dollar cost averaging can make sense long-term. However, considering the broader downtrend, traders may want to wait for a trend reversal.

If the $65 support level holds strong and AAVE forms a clear higher low, that would signal the downtrend is potentially ending. Additionally, the RSI hitting oversold levels could foreshadow a bottom. Until bullish signs confirm, caution may be prudent.

Is Aave a Good Long-Term Investment?

For investors with a multi-year time horizon, Aave remains one of the leading decentralized finance (DeFi) projects to gain exposure to. As a major lending protocol, Aave has real-world utility that gives it long-term investment potential.

Despite its recent struggles, AAVE still ranks among the top 40 cryptocurrencies by market cap. It has strong developer activity and high value locked in the protocol. With real-world use cases, AAVE has considerable upside from current levels over the long-term as DeFi expands.