{"id":354566,"date":"2024-09-24T02:40:12","date_gmt":"2024-09-23T21:10:12","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=354566"},"modified":"2024-09-24T02:40:12","modified_gmt":"2024-09-23T21:10:12","slug":"has-aave-price-hit-overbought-levels-after-a-30-weekly-surge-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/has-aave-price-hit-overbought-levels-after-a-30-weekly-surge-crypto-news\/","title":{"rendered":"Has AAVE Price Hit Overbought Levels After a 30% Weekly Surge?\u00a0 – Crypto News"},"content":{"rendered":"

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AAVE price surged 9% during the U.S. trading session on Monday, climbing among the top gainers according to Coinmarketcap. With a six-day rally, the altcoin breaks out of a two-year accumulation trend and retests at $180, a level last recorded in late April 2022. However, is the recovery sustainable?<\/span><\/p>\n

Is AAVE Price Entering Overbought Territory After a 30% Weekly Rally?<\/strong><\/h2>\n

The AAVE daily chart showed a high momentum price rally from $134 to $176 last week, accounting for a 32% growth. The bullish recovery backed by substantial volume gave a decisive breakout of $153 resistance, concluding a 2-year accumulation trend<\/a>.<\/span><\/p>\n

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An analysis of the weekly time frame chart shows the recovery<\/a> is contributing to the formation of a well-known reversal pattern called the Rounding Pattern. The chart setup displays a saucer shape and provides a stable transition from a prevailing downtrend to an accumulation stage and then high momentum recovery.<\/span><\/p>\n

With sustained buying, the AAVE price could surge 12% to challenge the $200 psychological resistance, followed by an extended rally to $260.<\/span><\/p>\n

\"AAVE
AAVE\/USDT \u2013 1d Chart<\/figcaption><\/figure>\n

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According to Santiment<\/a> data, whale wallets holding between 1 million to 10 million AAVE have been on a buying spree since early August 2024, with their accumulation now reaching a total of $4.2 million in AAVE tokens. This significant accumulation could potentially impact the AAVE market dynamics, bolstering its ongoing recovery.<\/span><\/p>\n

\"AAVE\"\"AAVE\"
Supply Distribution | Santiment<\/figcaption><\/figure>\n

On the contrary note, the AAVE price<\/a> has stretched far from its fast-moving 20-and-50-day exponential moving average, which is unstable and typically drives a bearish pullback.<\/span><\/p>\n

Another technical indicator, the Average Directional Index (ADX) surged to 35%, indicating the buyers could soon hit exhaustion and fail to sustain higher levels.\u00a0<\/span><\/p>\n

\"BINANCE:AAVEUSDT\"BINANCE:AAVEUSDT<\/p>\n

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Furthermore, the 30-day MVRV ratio surged by 23%, signaling that short-term traders are currently in profit. Historically, such elevated levels have coincided with Aave price peaks, as speculative traders often flood the market, capitalizing on short-term gains.<\/span><\/p>\n

\"Market\"Market
30-day MVRV \u2013 Santiment<\/figcaption><\/figure>\n

Therefore, as no trends remained the same, the AAVE price soon witnessed a temporary pullback potential to 20-days to recuperate the bullish momentum for the next leap.<\/span><\/p>\n

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Frequently Asked Questions (FAQs)<\/h2>\n
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\n \tYes, key technical indicators, such as the overextension from the 20- and 50-day EMAs and the 23% spike in the 30-day MVRV ratio, suggest that AAVE may have reached overbought levels, signaling a potential short-term pullback.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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\n \tThe recovery is driven by a bullish reversal pattern called the Rounding Pattern on the weekly chart<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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\n \tYes, if sustained buying continues, AAVE could rally an additional 12% to challenge the $200 psychological resistance<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n

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\u2713 Share:<\/p>\n

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Sahil Mahadik <\/p>\n<\/p><\/div>\n

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading <\/p>\n<\/p><\/div>\n

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

AAVE price surged 9% during the U.S. trading session on Monday, climbing among the top gainers according to Coinmarketcap. With a six-day rally, the altcoin breaks out of a two-year accumulation trend and retests at $180, a level last recorded in late April 2022. However, is the recovery sustainable? Is AAVE Price Entering Overbought Territory […]<\/p>\n","protected":false},"author":2,"featured_media":319532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[188,183,185,186,187,184,189,150,182,190],"class_list":["post-354566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-blockchain-tech","tag-blockchain-technology","tag-crypto-technology","tag-cryptocurrency-technology","tag-metaverse-technology","tag-nft-technology","tag-soul-bound-token","tag-tech","tag-technology","tag-token-technology"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/354566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=354566"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/354566\/revisions"}],"predecessor-version":[{"id":354572,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/354566\/revisions\/354572"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/319532"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=354566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=354566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=354566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}