Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
A current report highlighted how AAVE and its metrics appeared to be foreshadowing a bullish reversal from the $161 lows. The $170 and $160 are ranges of technical and historic significance, respectively.
Bitcoin has examined the $38.8k demand area once more, and if it could see some notable upside, the shift in market sentiment may have an effect on AAVE positively. The coin itself has not seen robust promoting volumes, regardless of the sharp drop in value. This instructed that additional upside might be potential for AAVE within the weeks to return.
AAVE- 1 Day Chart
Source: AAVE/USDT on TradingView
In white is a falling wedge sample that AAVE traded inside from December to mid-March. The value broke out of this sample later in the identical month. It additionally broke previous a descending trendline resistance (blue) stretching again to August 2021.
Based on the swing excessive and low at $113.9 and $261.2, a set of Fibonacci retracement ranges (yellow) was plotted. They confirmed that the $145-$170 area was a spot the place long-term buyers may look to purchase the token. This is as a result of the 61.8%-78.6% retracement ranges are ranges to which the worth usually retraces, earlier than persevering with on a bigger wave upward.
Moreover, these retracement traces had long-term assist ranges close by, at $160 and $140. Dollar-cost averaging might be a approach to enter an extended place.
Rationale
Source: AAVE/USDT on TradingView
The indicators, significantly the momentum indicators, mirrored the bullishness that AAVE had seen up to now few weeks because it shot upward from $113 to $260. The RSI retreated again to impartial 50 in response to the deep retracement, and the Awesome Oscillator was additionally simply beneath the zero line. This confirmed that, on the time of writing, the momentum didn’t favor both the consumers or the sellers.
The Chaikin Money Flow slipped beneath the -0.05 line up to now few days as promoting intensified. However, the OBV stood robust and noticed solely a shallow dive, despite the fact that the worth has fallen by almost 35% because the $260 native highs.
Conclusion
Even although the worth has taken a nosedive, the promoting quantity has not been significantly intense. Buying alternatives on decrease timeframes may come up within the $140-$160 space for AAVE within the days or even weeks to return.
