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Vikram
Jun 28, 2022

AAVE Technical Analysis: Retracement Within Wedge Warns $50 Fallout

AAVE Technical Analysis
AAVE prices crash drastically within the falling wedge pattern, accounting for an 80% drop. Will the supply dump break under $50?

Key technical points:

  • The market price has decreased by 1.73% over the past 24 hours.
  • The price action shows an increase in selling pressure near the resistance trendline.
  • The 24-hour trading volume of AAVE is $133 Million, indicating a rise of 16%.
  • Past Performance of AAVE

    AAVE price action shows a falling wedge pattern resulting in an 80% fall from $245 to $50, but the recent bullish reversal challenges the resistance trendline. However, the falling trend in the trading volume and the higher price rejection in daily candles warn of a bearish retracement.

    TradingView Chart

    Source- Tradingview

    AAVE Technical Analysis 

    The daily candles start to showcase wick formations reflecting higher price rejection from the resistance trendline. Hence, traders can expect a downtrend in AAVE price, retesting the support trendline and the $50 fallout. The DMI indicator displays the DI lines merged with no significant alignment in the daily chart. Moreover, the free-falling ADX line reflects a drastic loss in trend momentum.

    The RSI indicator indicates a slow bearish turnaround from the halfway line resulting in a retracement closer to the 14-day SMA. Hence, the indicator showcases a loss in underlying bullishness, teasing an upcoming downfall in market prices. The MACD indicator displays the growing bearish influence on the fast and slow lines as the bullish spread decreases, increasing the chances of a crossover. In addition, the falling intensity of the MACD histograms adds points to the bearish crossover possibility. Hence, the technical indicators and the AAVE price action analysis maintain an overall pessimist outlook.

    Upcoming Trend

    If the bearish trend momentum increases, the AAVE prices will crack under the psychological mark of $50 to test the support trendline.

    Resistance Levels: $76 and $100

    Support Levels: $60 and $50

    AAVE Technical Analysis: Retracement Within Wedge Warns $50 Fallout
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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