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- The average price is coming in at the end of the consolidation above the yearly low.
- The price action is showing a falling parallel channel in the higher time frame.
Dark clouds are gathering over AAVE crypto. Still, analysts have a bearish outlook on the altcoin following them since their all-time highs. During a bearish trend, the bears followed the selloff on the rise and each swing high turned into ever stronger bullish barriers.
Since this is the all-time high, buyers have lost around 91.71% in the last two years. This huge decline lowers the buyers expectation of higher area, so the bulls are not taking interest in AAVE token. Recently, buyers found higher price rejection at the resistance trendline of this lower bearish structure.
At the time of writing, AAVE token is trading at the $55 mark against the USDT pair. After two days of continuous decline, the buyers woke up and managed the crypto price in the green by 0.73%. Near the $50 mark, the buyers have a support level ahead of the $44-key support. For the short term, the AAVE price is likely to trade in a positive uptrend above this area.
The market capitalization registered a decline of 4.95% in the last 24 hours to $778.7 million. The trading volume is slowly increasing and looks to be sufficient for further downside in the price. Furthermore, it grew 23% to $56.9 million. For growth, the bulls need to rise above this bearish channel by the end of FY2022.
In terms of the 4-hours chart, AAVE price is aiming to hit the 20 simple moving average (white) before the end of this week. Following the trend, the RSI indicator has reached the oversold zone. This sign can help build up the long term for short term vision. On the other hand, ADX is rising along with the selling, showing heavy selling interest in altcoins.
conclusion
In the near term, the AAVE token price structure is showing positive signs as the RSI indicator is slowly recovering from the oversold zone. This bullish call can turn into a risky trade amid a weak market scenario.
Support level – $50 and $25
Resistance level – $100
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
