Aave broke through its resistance at $104 in the past 24hrs. Altcoins in the sector attempted to make a move north as the market strengthened. Bitcoin rose above $30,000, which extended the gains in the altcoin markets.
Aave was close to $104, which at the time of writing acts as support. For the bearish thesis not to become invalidated, it is necessary for bulls to increase. Aave has gained 10% over the past week on its chart. A fall in the price of the coin will cause it to drop below $103 support.
At the $108 level, the price of the coin is currently facing resistance. Aave must trade at least $108 above its resistance level in order for the coin to move in bullish prices. If the coin doesn’t manage to move above the aforementioned level then Aave might extend further losses.
Aave Analysis: 1 Day Chart
After breaking through the $104 resistance, the altcoin traded at $105 as of the writing. At $108, the overhead resistance of the altcoin was in place. The coin can reach the $93 level if it falls below its current price. Another major resistance point was $120.
Aave traded at this level last month in January 2021. However, the market has seen buyers attempt to return in the past week. Volume bars showed the same result. The volume traded during the previous session was green. It indicated that bullish price action occurred at press time.
Technical Analysis
As Aave displayed strength over the last week, the chart has seen buying strength steadily increase. This was reflected in the Relative Strength Index. At press time the indicator was at the half-line. This indicates that the market had equal numbers of buyers and vendors.
Aave was however parked higher than the 20-SMA, which indicates that price action favors buyers. It was the buyers who drove the market’s price momentum.
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So far, the cryptocurrency has shown mixed signals in its one-day chart. While most indicators were positive, others did not reflect the same price action. Chaikin Money Flow recorded a decline, which indicated a decrease in capital outflows.
Moving Average Convergence Divergence on the other hand, experienced a bullish crossover when the price of the coin began to look more optimistic. Also, the MACD’s green histograms were a sign of the buy signal. Aave may attempt to trade close to the $120 price point if buyers respond. Support from the wider market, however, will be needed.
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