- The AAVE token price is trading near the demand zone, on a daily time frame.
- The token price is forming a symmetrical triangle pattern on a daily time frame.
- The pair of AAVE/BTC is trading at the price level of 0.003789 with an increase of 0.38% in the past 24 hours
The AAVE token price as per the price action is trading near the demand zone after facing strong bearish pressures off the supply zone. Recent bearishness that prevailed in the global market resulted in the token price falling rapidly. The AAVE token price has started consolidating near the demand zone on a daily time frame.
At present, the token price is sideways on a daily time frame while on a weekly time frame the token price is forming a lower low and lower high formation. The AAVE token price is forming small indecisive candlesticks at the demand zone, and therefore breaking out of a small consolidation zone on either side will trigger a big move. At present, the token price is trading below the 50 and 100 Moving Averages. The recent fall in the price of AAVE tokens led to the breakdown of the 50 and 100 MAs.
Moving upwards the token price can be seen facing a strong ejection of these important MAs. Currently, the AAVE token price is trading at the lower band of the Bollinger band indicator after failing to surpass the supper band. Volumes have increased causing the volatility to increase therefore investors should remain cautious and wait for the proper signal.
The AAVE token price is forming a symmetrical triangle pattern on a 4-hour time frame
Average Directional Movement Index: ADX curve has been in a downtrend as the token price entered a consolidation phase. Recently, the ADX curve slipped below the mark of 30. As of now, the ADX curve trades at 24.42. Once the token price crosses the important short-term supply zone, the ADX curve can also be seen dipping out of the 20-mark zone, supporting the trend. The ADX curve has turned sideways indicating a halt in the price movement and possible change in the price structure in a lower time frame.
Relative Strength Index: RSI curve is trading at the level of 47.38 . As of now, the RSI curve is yet to cross the halfway mark of 50. Once the AAVE token price bounces off the supply zone, the RSI curve can be seen rising higher. The RSI curve has also crossed the 20 EMA. Despite the consolidation phase, the RSI curve is rising indicating bullish momentum to foray.
Moving Average Convergence Divergence: The AAVE token price has managed to sustain above the demand zone despite the bearish trend prevailing in the market. The recent fall in the price of AAVE token has resulted in the MACD indicator triggering a negative crossover. The blue line crossed the orange line on the down side indicating a bearish trend in the upcoming trading days. If the token price does not sustain above the demand zone and falls below the important short term demand zone, the MACD lines can be seen widening, supporting the trend.
Conclusion: The AAVE token price is trading in an upward parallel channel form the past month and recently it fell back to the demand zone sharply on a daily time frame. The token price as per the price action is bearish on a weekly time frame. As the technical parameters suggest the token price can be seen falling if it does not hold the demand zone. Investors should remain cautious and wait for a clear trend
Support: $52.8 and $53.0
Resistance: $71.85 and $68.10
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