Published June 11, 2022
The AAVE price entered June on a bearish note as it turned down from $120 resistance. The V-Top reversal plunged the altcoin to the $80 mark, closing to the $75.6-$67.2 support zone. Thus, sustained selling may bolster sellers to breach the bottom support.
Key points:
- The AAVE price has lost 35% within a fortnight
- The AAVE chart shows five consecutive red candles on the daily chart
- The intraday trading volume in AAVE/USD is $150.4 million, indicating a 19.5% gain
source trading view
The early May sell-off dropped the AAVE price to a new low of $65.51 on May 12th. However, a long tail-rejection candle near this level indicated the presence of high demand pressure, which triggered a bullish pullback.
The relief rally carried through the latter half of May and drove the AAVE price 62% higher to hit the $125 mark. Furthermore, the altcoin reverted from this resistance zone with an evening star pattern indicating the continuation of the prevailing downtrend.
Thus, the resulting downfall tumbled the AAVE price by 35%, as it currently trades at the $81.2 mark. If the selling pressure persists, the coin price may soon retest the bottom support zone of $75.6-$67.2.
Thus, a possible fallout from this support would catalyze a 26% fall to the $50 psychological level.
Technical indicator
The AAVE price breached the lower band of the Bollinger band indicator, accentuating aggressive selling pressure from traders. Though a retest to this support band could trigger a minor pullback, as long the price sustains below the midline, the bears remain in charge.
A bearish crossover between the MACD and signal line encourages the ongoing sell-off in AAVE price. In addition, the crossover could attract additional sellers in the market and increase the possibility of $67 fallout.
- Resistance levels: $91.8 and $115
- Support levels: $75.6 and $50
From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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.
closed story
Comments are closed.