AAVE Technical Analysis: Can AAVE Buyers Exceed The 50-day Average?
Table of contents
Key technical points:
Past Performance of AAVE
The AAVE price action shows a rounding bottom reversal from the psychological mark of $50. This accounts for a 50% jump in the early days of July and brings the falling wedge breakout. However, the market price shows a potential cup and handle forming as the prices retrace from the 50-day SMA to take support at the $70 mark.
Source- Tradingview
AAVE Technical Analysis
AAVE price action shows a potential morning star pattern forming at the support level of $70, which attempts to complete the handle portion of the bullish pattern. Hence traders can expect the bullish reversal rally to challenge the 50day SMA with a jump of 16%.
The MACD indicator shows the fast and slow line slowing below the zero line leading to a lateral trend, increasing the bearish crossover possibility. In addition, the declining trend in the histograms backs the bearish crossover possibility, but a positive bullish pattern breakout will avoid any such events.
The RSI indicator shows a sudden drop in the underlying bullishness as it dips at the halfway line and avoids teasing the 14-day SMA. Supporting the bearish team, the 50-day SMA acts as a dynamic oppressor to keep the bullish growth in check.
In a nutshell, the AAVE technical analysis displays a bearish takeover attempt that buyers can avoid with the 50-day SMA breakout.
Upcoming Trend
If the AAVE prices sustain above the $70 support level, traders can expect the $76 breakout rally to reach $100. Conversely, a bearish reversal from the 50-day SMA will break the $70 mark to test the psychological mark of $50.
Resistance Levels: $76 and $100
Support Levels: $70 and $50