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- 1 Aave price is currently trading at $65.4 while witnessing a rise of +1.71% during the intraday session.
- 2 AAVE currently trades below 20,50,100, and 200-Day SMAs.
- 3 Three-month return of AAVE is -25.40%.
Aave, A decentralized lending protocol involving lending, borrowing, and interest-earning on interest on crypto assets without the involvement of central authority. It allows you to take out quick cryptocurrency loans using another cryptocurrency you own. It also allows users to lend their crypto and earn interest.
Recently, the AAVE’s price has shattered the support level of $66 and formed support at the $62 level. The move was initiated after the price received a rejection from the $74, which triggered the drop, and increased bearish momentum caused the breakout.
The price is hovering near the resistance level of $66 and trying to enter the consolidation zone again. AAVE price in the past week struggled to rise above the resistance level of $66 and started to drop, but bulls entered the market to help the price form support at $64.
After the formation of support, the price started to rise but still has not been able to close above the $66 resistance. If the price can rise above the immediate resistance, there is a higher probability for the price to retest $74 and head toward the annual highs.
While on the other hand, if the price can break the recent support, the price might drop to the $55 level, causing a drop of roughly 11%.An ongoing bearish momentum could lead to AAVE losing all of its gains in 2023.
Will AAVE price rise above $66 level resistance?
Aave price is trading below all the major EMAs – 20,50,100, and 200-day, indicating bearish momentum. Even though the price shows bullish sentiment daily, the Chaikin money flow score is at 0.02, suggesting very little strength in the market, and has started to dip.
RSI is still residing in neutral territory and is currently at 46.18. On May 18, the candle almost did break out, but bears pushed the price back below the $66 level. The upper wick of the May 18 candle needs to be broken for the price to head toward the $74 level. AAVE’s price is roughly 30% down from the yearly highs.
The long/short ratio is 1.09, with 52.23% longs and 47.77% shorts, indicating bullish sentiment influences the market in the last 24 hours. Currently, there is yet to be a proper confirmation of where the price might head.
Conclusion
The market structure and price action are slowly turning bullish, but the price needs to rise above the $66 level to sustain it. The technical indicators are indecisive, as the price is currently stuck in a consolidation zone.
Bulls should defend the recent support with activeness as break would cause a severe loss for the overall yearly gains of Aave price.
Technical Level
Major support: $62 and $55
Major resistance: $74 and $84
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. 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.
