Analytics

AAVE Technical Analysis: Will AAVE Prices Sustain Above 100-day SMA?

The AAVE price shows a correction in the ongoing bullish trend within a rising channel pattern teasing a drop below the 100-day SMA.

Key Technical Points:

  • The AAVE (AAVE) price action shows a bear cycle within the rising channel, taking support at the 100-day SMA.
  • The bear cycle cracks under the psychological mark of $100, teasing a downtrend continuation.
  • With a market cap of $1.341 billion, the intraday trading volume of AAVE has dropped by 2.84% to reach $222 million.

Past Performance of AAVE

As predicted in our previous article, the AAVE prices exceed the psychological mark of $100, resulting in the breakout of the 100-day SMA. However, the higher price rejection above $100 results in an early bearish reversal before reaching the resistance trendline. Currently, the downtrend breaks under $100 but takes support at the 100-day SMA, avoiding a high momentum downfall. The ongoing bear cycle accounts for an 8% price drop in the last six days, but the recent lower price rejection teases an uptrend continuation.

Source — Tradingview

AAVE Technical Analysis

The bullish trend possibility increases as the AAVE price avoids a drop below $90 with significant low price rejection. However, the traders must wait for the market price to break above $100 before taking a bullish trade. With the prices taking a diagonal shift at the 100-day SMA, the bullish influence over the 50-day SMA increases, resulting in a positive turnaround. Hence with a bullish reversal in the market price, we can expect a bullish crossover of the 50 and 100-day SMA. The RSI slope maintains a sideways shift in the nearly overbought zone, reflecting a lack of trend momentum. Moreover, the MACD indicator displays the fast and slow lines most in the positive territory giving no specific signal. In summary, the AAVE technical analysis displays a bullish reversal possibility as the 100-day SMA avoids a downfall.

Upcoming Trend

If the demand for the AAVE prices increases, the bullish trend might reach the resistance trend line near the supply zone of $115. Conversely, a downfall below the 100-day SMA will test the support trendline close to the $85 mark. Resistance Levels: $100 and $115 Support Levels: $90 and $85

   

Source

Click to rate this post!
[Total: 0 Average: 0]
Показать больше

Добавить комментарий