AAVE TOKEN PRICE ANALYSIS: AAVE token price has bounced off the demand zone, will it continue the bullish trend?

• AAVE token price is hovering around the supply zone as it bounced off the long-term demand zone.
• The AAVE token price is forming a rounding bottom pattern on a daily time frame.
• The pair of AAVE/BTC is trading at the price level of .00040 21with an increase of 1.02% in the past 24 hours.

Source: AAVE/USDT by tradingview

AAVE token price, as per the price action, bounced off the demand zone, which has resulted in the town price starting to form higher high and higher low formations. As of now, the AAVE broken price is consolidating near the supply zone of $120. The AAVE token price is in a bullish trajectory following the bullish momentum of the overall cryptocurrency market over the past 8-10 days. The AAVE token price is forming an indecisive candlestick pattern at the supply zone. At present, the token price is trading below the 100 Moving Average. Going forward the token can face rejection of the 100 Moving Average. The token price has already crossed the 14 SMA and 50 Moving Average, indicating a bullish trend to continue. The AAVE token price is currently trading at the upper band Of the Bollinger band indicator. The token price tried to break out of the upper band but failed to do so. The AAVE token price has bounced off the lower band of the Bollinger band indicator forming a strong bullish candlestick pattern. Volumes have increased as the token bounced off the lower band. As of now, the volumes have been normal therefore investors should wait for a proper confirmation of breakout or rejection of the supply zone and then act accordingly.

AAVE Token price is forming a falling wedge pattern on a weekly time frame

Source: AAVE/USDT by tradingview

Average Directional Movement Index: ADX curve has been on a downfall as the token continues to make a lower low and lower high formation on a higher time frame. The AVE token price has been falling as it faces continued rejection of the red trendline acting as a strong supply zone. This has resulted in the AAVE token price forming a falling wedge pattern on a weekly time frame. As a result, the ADX curve has slipped below the mark of 15. As of now, the token is hovering around the supply zone. It remains to see if the token breaks the falling wedge reversal pattern or fails to do so.

Relative Strength Index: RSI curve is currently trading at the level of 42.75. The RSI curve is yet to cross the halfway mark of 50. As the token hovers around the supply zone, Once it gives a breakout of the supply zone the RSI curve can be seen crossing the halfway mark of 50, supporting the trend.

AAVE token price is trying to bounce off the short-term demand zone, will it do so?

Source: AAVE/USDT by tradingview

Supertrend: AAVE token price is forming higher high and higher low formation on an hourly time frame.as of now the token price has crossed the super trend sell signal line on an hourly time frame, but the candle is yet to close. Once the candle closes above the super trend sell line, the super trend indicator can be seen giving a buy signal. Going forward, the super trend buys line can act as strong support for the AVE token price.

Moving Average Convergence Divergence: MACD indicator gave positive crossover recently as the token price bounced off the short-term demand zone. The blue line crossed the orange line on the upside indicating bullish momentum. Once the AAVE token price crosses the short-term supply zone of $93, the gap between the MACD line can be seen widening supporting the trend.

CONCLUSION: AAVE token price, as per the price action is trading at the supply zone on a daily time frame. As of now, the token are firming a bullish reversal pattern on a higher time frame. The technical parameter suggests the same. It remains to see if the tone price breaks the falling wedge pattern or again faces rejection off the trendline supply zone and falls.

SUPPORT: $84 and $86

RESISTANCE: $100 and $120

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