Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
- The promoting quantity behind AAVE was not indicative of potent bearish strain in August, which meant a rally was not unreasonable
- The value motion confirmed that the construction and momentum favored the sellers throughout a number of timeframes
Aave [AAVE] has been in a downtrend on the weekly chart since June 2021. This June, the worth noticed a rally from $49 to $88- but it surely wasn’t sufficient to shift the upper timeframe downtrend. Nonetheless, there might be one other such rally later this yr.
Learn Aave’s [AAVE] Value Prediction 2023-24
The $50 psychological degree has served as assist since November 2020. There have been days the place the promoting exercise was so nice that AAVE quickly reached the $44-$45 mark, but it surely has rebounded previously. Right here’s what buyers can look forward to earlier than trying to purchase the token.
A transfer to the $50 space may yield a very good risk-to-reward shopping for alternative
Supply: AAVE/USDT on TradingView
The each day chart noticed a bearish construction emerge after AAVE fell under the $68.7 degree on 31 July. This bearish bias remained unbroken, with the current decrease excessive at $69.5. The RSI agreed with the construction because it was unable to climb previous the impartial 50 degree. To the south, the $50 degree coincided with a bullish order block from 15 June that was highlighted by the cyan field.
When AAVE retested this demand zone on 17 August, it noticed a constructive response. The decrease timeframe charts resembling 4-hour confirmed a bullish construction developed previously week. Nonetheless, the $61.5-$64.8 space represented a robust resistance zone.
A excessive likelihood shopping for alternative would come up if AAVE falls to the $40-$50 space. This may not materialize quickly, for the OBV has remained comparatively flat over the previous two months regardless of the downtrend. Therefore, AAVE patrons might be justified in being extra aggressive and trying to enter within the $52-$55 space because the promoting strain was not intense.
The goal can be the current decrease at $69.56, with the July excessive at $88 a much more formidable goal.
Lively addresses have trended downward since July as costs slid decrease
Supply: Santiment
The imply coin age trended upward previously two months to sign network-wide accumulation. Mixed with the OBV, it prompt that long-term holders didn’t possess bearish conviction. The event exercise has been on the rise as effectively.
How a lot are 1, 10, or 100 AAVE value at present?
The drop in energetic addresses was a priority because it confirmed a smaller crowd interacting with and speculating upon the asset. This prompt bullish expectations had been in decline. The energetic deposits metric didn’t see a big spike previously week. It usually coincides with highly effective waves of promoting strain and was one thing to maintain a detailed eye on.
