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- 1 Aave price is currently trading at $64.9 while witnessing an increase of +0.46% during the intraday session.
- 2 Aave price is currently trading at $64.9 while witnessing an increase of +0.46% during the intraday session.
- 3 Aave price is currently trading at $64.9 while witnessing an increase of +0.46% during the intraday session.
The beginning of 2023 for Aave price was pretty amazing as it gained bullish momentum and increased to form an annual high of $95.5. The cryptocurrency price then corrected the move by melting down straight to $66.
Aave price gained bullish momentum after retesting annual highs but the move was halted by the bears at $84 which triggered a drop in the price pushing price down.
Aave price breached the crucial support level of $66 and is currently stuck in a consolidation zone ranging between $62 and $66. On the condition that bulls can push the Aave price above the immediate resistance of $66, there is a higher probability for the price to head toward the next resistance level of $74.
While on the other hand, if bears can push price below the recent support, the price might head directly toward the $54 level which would lead to a loss of approximately 9.65% in the price.
Defi Tokens Like AAVE Observe Uncertainty
After the bullish rally in April, May has brought back the uncertainty in the Decentralized Finance market. A bug in Aave V2 on Polygon led to the freezing of some assets in the contracts and prevented assets from being withdrawn from them. The top 100 Defi tokens had another bearish week.
Will Aave Price Shatter the Latest Support?
Aave price is currently trading below 20,50,100 and 200-day EMAs indicating bearish momentum in the price. The Relative strength index is at 45.98 denoting that the price is in neutral territory facing the same pressure from bulls as well as bears.
For any confirmation, the price needs to break and close above the resistance or below the support level. There is no current direction till Aave’s price is stuck in a consolidation zone. The overall trend is still bearish for the price. Chaikin money flow score is 0.07 indicating increasing strength in the market.
CMF has been staying above the 0 mark even though the price is consolidating. The Bollinger bands have contracted, suggesting low volatility in the market. The long/short ratio is 1.01 with 50.25% longs and 49.75% shorts indicating almost the same position from both buying and selling sides.
Conclusion
The market structure and price action for Aave price is indecisive as it entered a consolidation phase after May 10. The price has been lingering in the same zone for more than 10 days. The more the price consolidates, the more intense would be the move either in the upward or downward direction. The technical parameters have not shown any major bullish or bearish signs.
Technical levels
Major support: $62 and $56
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.
