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AAVE’s rally to $ 350 depends on this vital support

Aave price plunged to a low of $ 211 on July 20, down 39% from the July 6 high of $ 348. During this decline, AAVE turned the 50-, 100-, and 200-day Simple Moving Average (SMAs) from support to resistance. Tuesday’s red market rebounded with the buyer determined to push the token into areas around the psychological level of $ 350.

AAVE stays going for two days

AAVE bulls found support at the $ 220 support wall and have pushed Aave price up to $ 280 in the past two days. During this rally, the Aave bulls flipped the 50-day, 100-day and 200-day price from resistance to support as they posted higher highs and higher lows on the 4-hour chart after each trading session was closed .

The divergence of the moving average convergence gives credibility to this bullish narrative through its position above the signal line. Note that if the MACD stays in positive territory above the zero line, the Aave price traction will be maintained.

In addition, the SuperTrend indicator showed a crypto sell-signal on Wednesday, which coincided with the crossing of the MACD line (blue) above the signal line (orange) which is also a sell-signal. This caused buyers to flood the market to push the Aave price into areas above $ 280.

At the time of writing, AAVE is trading at around $ 281 as buyers appear to be controlling the market. This is a 33% increase from the July 20 low of $ 211.

Aave price four hour chart

Aave faces massive upward resistance

The Aave price four hour chart shows that the bulls will have to overcome important resistance to sustain the rally at $ 350. Note that a candlestick close above the $ 290 resistance level will fuel upward traction until the AAVE encounters a large resistance zone at $ 310. Aave’s rejection at this level could cause the bulls to retreat to support at $ 290 before retesting the $ 310 resistance level.

Overcoming this hurdle will result in Aave price re-testing the July 12th high at $ 322 and even the July 6th high at $ 348 before hitting $ 350.

The on-chain metrics In / Out of the Money Around Price (IOMAP) emphasize the hurdles that the Aave price has to overcome. It is clear from the IOMAP model that AAVE faces immediate resistance in the $ 281 and $ 290 area. In that zone, approximately 2.84 million addresses previously purchased 3.3 million AAVE. Beyond that level, AAVE will be one of the next cryptocurrencies to explode.

Aave Prize IOMAP

On the flip side, the AAVE bulls will have to defend the crucial support area at $ 274 to ensure the price does not go down.

Note that a candlestick close below this level will invalidate the upward rally as it will force Aave price to retest the support levels at $ 248 and $ 225 before dropping to the July 20th low of $ 211.

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Nancy Lubale

Nancy Lubale

Crypto Analyst and Technical Writer Nancy is a successful crypto analyst and content writer with years of experience in finance and blockchain. Nancy has produced high quality content for websites in the cryptocurrency industry including Krptotrends. She is a certified cryptocurrency expert (CCE) from the Blockchain Council.

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AAVE price

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Aave price plunged to a low of $ 211 on July 20, down 39% from the July 6 high of $ 348. During this decline, AAVE turned the 50-, 100-, and 200-day Simple Moving Average (SMAs) from support to resistance. Tuesday’s red market rebounded with the buyer determined to push the token into areas around the $ 350 psychological level. AAVE stays buoyant for two days in a row AAVE bulls found support at the $ 220 support wall and have propelled Aave price to $ 280 in the past two days. During this rally, the Aave bulls have the 50 day, 100 day and 200 day …

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