Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- The indications confirmed robust bearishness.
- Regardless of that, shopping for the asset supplied a superb risk-to-reward alternative.
The previous week has been a gentle onslaught from the Aave sellers. The worth fell from $92 to $77 inside per week, however a bullish reversal may happen quickly. There was some disagreement with this anticipation and from the symptoms.
How a lot are 1, 10, 100 AAVE price as we speak?
Is it a good suggestion to purchase AAVE, simply because it sat atop near-term assist? Will the bounce from $77 see a follow-through, or will the costs proceed to plunge decrease over the following week?
Loads trusted Bitcoin. So long as BTC didn’t see sharp promoting stress, the outlook for AAVE stays bullish within the close to time period.
The six-week vary continues to be revered
The rejection from $91.3 on 17 January established a spread that AAVE continued to commerce inside as we speak (27 February). The highs and lows of this vary lie at $91.3 and $77.5 respectively, with the mid-range at $84.5.
Aave examined the low of the vary on 26 February, reaching $77.2 earlier than bouncing. On the time of writing, it traded at $82.5. From analyzing the worth motion alone, the inference is a bullish week for AAVE.
It’s more likely to check the $84.5 mark quickly, breach it, and head towards $91.3-$92 if Bitcoin doesn’t see enormous promoting stress.
Nevertheless, the symptoms disagreed with this notion. The MACD shaped a bullish crossover beneath the zero line, which indicated bearish momentum was weakening, though the bears nonetheless ran the present.
The DMI additionally confirmed a robust downtrend in progress, with each the ADX and the -DI (crimson) above 20.
Lifelike or not, right here’s AAVE’s market cap in BTC phrases
The market construction was additionally bearish on the 4-hour chart, however till the vary is damaged, the construction wouldn’t dictate the place reversals occurred. The vary extremes stay of paramount significance for merchants on decrease timeframes.
Open Curiosity struggles to get a transfer upward
Alongside the symptoms, the futures market additionally famous bearish sentiment. Whereas Aave costs bounced greater from $77 over the previous couple of days, the OI has slumped, as proven on the 1-hour chart above.
This confirmed that market individuals didn’t anticipate robust features from the asset, which meant the rally from the vary lows may not final lengthy.
The spot CVD was additionally in a downtrend to counsel robust promoting stress. Due to this fact, AAVE consumers have to be cautious and intensely vigilant about danger over the following day or two.