AEVO Breakdown Confirms Bearish Continuation
AEVO has entered a bearish continuation phase after breaking below the key $0.060 horizontal channel support. The breakdown, which followed weeks of sideways trading, has shifted the technical structure decisively in favor of sellers. Price action extended lower to $0.0553, perfectly aligning with projections from the previous range breakdown setup.
During its earlier consolidation phase, AEVO oscillated between $0.060 and $0.070, struggling to regain momentum above its midline and 20-day EMA. Every effort to build strength beyond the level of $0.065 was again subject to increased selling pressure, which weakened the confidence of the bulls and set the stage for a correction. When the base was violated to $0.060, it prompted the cascading stop-loss orders and increased selling volume, which proved the existence of a bearish market bias.
AEVO is, as of writing, trading at an average of $0.05861, which represents a slight 1.5% recovery per day. Nevertheless, trading volume has reduced by 37.24% and stands at $11.56 million, indicating low participation and little conviction among buyers. This subdued recovery will serve as an indicator of reserved trading as traders observe the token’s ability to stabilize above the near-term lows.
Former Support Now Serves as Resistance
In technical terms, the previous horizontal channel support near $0.060 now acts as an immediate resistance level. The recent breakdown has repositioned market structure, with sellers viewing any retest of this zone as an opportunity to reinforce downward pressure. Such a pattern is common in bearish continuations, where failed retests confirm the prevailing trend.
Momentum indicators show continued weakness. AEVO remains below both its EMA and SMA, and the downward slope of these moving averages validates the ongoing trend. The failed reclaim of the EMA zone earlier signaled exhaustion among buyers, paving the way for deeper retracements. Unless price closes consistently above $0.060 with expanding volume, a sustained recovery appears unlikely.
Analyst commentary from @alphacryptosign supports this outlook, noting that the structure remains bearish while AEVO trades below the resistance zone. The account emphasized that rejections at $0.060 would strengthen downside continuation toward the next support range of $0.052–$0.053, where potential stabilization may occur.
Market Metrics Show Controlled Selling and Accumulation Signs
Despite the weakness, AEVO’s broader fundamentals remain stable. The token’s market cap currently stands at $53.65 million, closely aligned with its fully diluted valuation of $58.61 million. This narrow gap suggests that nearly all of AEVO’s circulating supply—around 915.45 million tokens—is already available, minimizing dilution risks.
The project maintains a healthy on-chain foundation, with a total value locked (TVL) of $31.67 million and a market cap-to-TVL ratio of 1.69. This ratio indicates that a meaningful portion of AEVO’s valuation is supported by actual platform engagement rather than speculative trading alone. Such balance provides room for organic recovery once technical resistance levels are reclaimed.
Trading-wise, the second important watch zone is between $0.052 and $0.053, where previous responses were noted. If AEVO stabilizes in this range, then it can form a short-term base before a possible rebound effort. Until then, the structural control of sellers will be present, and the market will probably stay within the range of less than $0.060.