AAVE Technical Analysis: Bulls Plan The Consolidation Trap Breakout

The AAVE technical analysis shows a bull cycle starting in the consolidation range challenging the resistance trendline to end the declining trend. The AAVE price action displays a bear trend starting a consolidation range between the $70-$78 mark in the daily chart. Currently, the recent bull cycle in the range pattern forms a morning star pattern teasing a trendline breakout. So, should you consider grabbing this bullish opportunity in AAVE?

Key Points:

• The AAVE price action shows a highly influential bearish trendline in the daily chart.  
• The reversal at $70 signals the start of a new bull cycle. 
• The intraday trading volume in AAVE is $157 million.

Source-Tradingview

AAVE Technical Analysis

The AAVE price action maintains a declining trend after reversing from the $115 supply zone generating a resistance trendline. Additionally, the market value has declined by 38% in the influence of the resistance trendline.  On analyzing the price trend, the market price shows a consolidation range between the $70 and $78 mark, cushioning the downtrend. Currently, a morning star forms at the base level of the triangle pattern, teasing the potential bullish breakout. Furthermore, the 2.46% intraday jump completing the morning star pattern supports the bullish breakout possibility. Therefore, if the buying pressure sustains, the AAVE prices will break the consolidation range and the resistance trendline to reach the $90 mark.   Conversely, the bullish failure to break the resistance trendline will inevitably break the $70 support level, leading to a fall to $50. 

Technical Indicator 

The RSI slope projects a sideways trend struggling to rise above the halfway line, but the reversal in the nearly oversold zone reflects a rise in the underlying bullishness. However, the MACD and signal lines are choppy due to multiple inconclusive crossovers. Therefore, the technical indicators highlight a reversal possibility as the market recovers. As a result, the AAVE technical analysis signals a buying opportunity at the bullish breakout. Resistance levels- $78 and $90 Support levels-  $70 and $50

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