Aave Price Jumps 8%; Is This Rally A Bull Trap? – Crypto News – Crypto News
Connect with us
AAVE AAVE

Technology

Aave Price Jumps 8%; Is This Rally A Bull Trap? – Crypto News

Published

3 years ago

on

Published 10 minutes ago

The past three months’ price action AAVE coin price showed a simple formation of the cup and handle pattern. However, amid the recent sell-off, the AAVE price lost a crucial support of $80, indicating the bullish pattern got invalidated. Anyhow, a sudden price jump today to $80 questions the credibility of the aforementioned breakdown.

Key Points:

  • A bullish breakout from the $80 barrier could set the AAVE price to reach the $97 mark.
  • If the daily candle closing remains below $80, the holders may witness an extended correction.
  • The intraday trading volume in AAVE is $188.8 Million, indicating a 293% gain.

Avee PriceSource- tradingview

The last three-week consolidation phase was part of this bullish pattern, which should have replenished bullish momentum for future gains. However, with the increasing negativity in the market, the AAVE price breached the $80 support, weakening the aforementioned bullish thesis.

Anyhow, today, the AAVE price witnessed a significant inflow and pushed the prices back above the $80 mark. If the daily candle closes above the mentioned level, the prior breakdown will be considered a bear trap or a fake breakdown. Furthermore, the aggressive short-sellers who entered the market may face forced liquidation and thus increase the buying orders in the market. If this happens, the bullish thesis will remain intact and so does the cup and handle pattern.

Also Read: Top 10 DeFi Lending Platforms In 2023

Conversely, if the coin price remains below the $80 mark, the sellers will get an additional confirmation for price sustainability at a lower level and may trigger a longer correction phase. The potential downside may reach the $66.5 support.

Thus, the coin holders should wait for today’s daily candle closing as it may significantly influence the AAVE price’s near future.

technical indicators

EMA’s: the flattish daily EMAs(20, 50, 100 and 200) signals a sideways trendline in the market

RSI: The Relative Strength Index (RSI) is a popular oscillator technical indicator used to measure the strength of an asset’s price movement. Thus, a steady downfall from the RSI slope below the midline indicates the negative sentiment in the market is rising.

AAVE Coin Price Intraday Level

  • Spot Price: $81.8
  • Trend: Bullish
  • Volatility: Moderate
  • Resistance levels: $97 and $116
  • Support levels: $80 and $71

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian(at)coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Close Story

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending