Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
- AAVE hit the worth ceiling close to $82.
- However the retracement has hit an space of confluence, together with the 50 MA and 200 EMA.
Aave [AAVE] tried a profitable restoration however hit a key value ceiling and promote strain zone of $80-$82. Nonetheless, the retracement has additionally hit a vital confluence space of help which will undermine short-sellers, particularly if Bitcoin [BTC] drops beneath $28k.
Learn Aave’s [AAVE] Value Prediction 2023-24
Not too long ago, AAVE revealed an growth plan, with BNB Chain as the following seemingly vacation spot for AAVE v3. Regardless of the potential excellent news for bulls, BTC’s fluctuations close to $28k may additionally decide AAVE’s value motion over the following week.
Will the confluence space forestall additional drops?
Supply: AAVE/USDT on TradingView
The $80 – $82 zone has been a persistent provide zone since mid-March, each within the decrease and better timeframe charts. From 27 March, the bulls secured $68.8 and rallied 18% however have been blocked by the availability zone. AAVE had retraced by over 5% at press time and traded at $76.4.
In the meantime, Bitcoin struggled to maintain above $28k. A drop beneath $28k may tip sink AAVE beneath the confluence of the 50 MA, 200 EMA and the $76 help degree. However short-sellers might solely acquire leverage in the event that they sink AAVE beneath the descending line and $75.
Alternatively, near-term bulls may very well be hopeful in the event that they defended the confluence space. The subsequent seemingly goal if the $76 help is defended is the availability zone of $80 – $82. If AAVE overcomes the promoting strain, the following resistance ranges lie at $83 and $85.
On the time of writing, the RSI (Relative Power Index) retreated from the overbought zone and was beneath 50, indicating a drop in shopping for strain previously few days. Equally, the OBV (On Stability Quantity) dipped, displaying that the demand for the token dropped barely in the identical interval.
Imply coin age elevated regardless of the declining buying and selling quantity
Supply: Santiment
The imply coin age has persistently risen previously few days, indicating that there was a large accumulation of AAVE tokens previously few days, and a possible rally may happen.
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Whereas this could be excellent news for bulls, the declining buying and selling volumes, as seen by the drop in hourly energetic addresses, may tip the dimensions in favor of sellers.
Nevertheless, sentiment remained optimistic and improved barely at press time. However buyers ought to observe BTC’s value motion for higher trades.
