AAVE Technical Analysis: Declining Bearish Influence Teases Jump
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The AAVE prices take a bearish turnaround after facing opposition at the $115 supply zone resulting in a drop to the $75 mark. However, the recent bullish reversal teases a possibility of a trendline breakout as the buying pressure increases. So should you consider entering the reversal rally before the trendline breakout?
Key Points:
Source - Tradingview
AAVE Technical Analysis
The AAVE prices fail to exceed the $115 supply zone resulting in a downtrend breaking below the sub-port trend line in the daily chart. The correction phase accounts for a drop of 35% within a fortnight to test the $75 support level.
The recent increase in the buying pressure is evident by the spike in the intraday trading volume supporting the bullish reversal. Hence the possibility of an uptrend surpassing the resistance trendline to unleash the trapped bullish momentum increases.
A possible reversal from the resistance trendline should bolster sellers to break the week's support of $75. This breakdown will intensify the bearish momentum and plunge prices 13% down to retest $67.4.
On a bullish note, a trendline breakout rally will signal the end of the correction phase and surge prices to $115.
Technical Indicators
The RSI slope displaying a bullish divergence rose to the neutral line, indicating the buyers are wrestling for trend control. The MACD indicator is nearing to project a buy signal with a bullish crossover of the fast and slow line.
Hence, the technical indicators maintain a bullish standpoint for the upcoming trend in AAVE prices.
Resistance Levels: $100 and $115
Support Levels: $75 and $50