- The AAVE token price is showing bullish after the bearish momentum in the previous week.
- The AAVE 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 0.003398 with an increase of 0.96% in the past 24 hours.
The AAVE token price, as per the price action, has bounced off the demand zone, after facing a strong sell-off in the previous week. AAVE token price is currently trading in the demand zone. AAVE token price is making lower high and lower low price structures on an hourly time frame. As the AAVE token price fell, it broke the important demand zone in a lower time frame.
The AAVE token price broke the demand zone with a strong bearish candlestick pattern which resulted in the rapid fall. As of now, AAVE token is trading above an important demand zone after forming a bullish candlestick pattern which resulted in the bounce back. AAVE token price is currently trading below the 50 and 100 Moving averages. Recent bearishness that prevailed in the market has led to AAVE token price breaking down the 50 and 100 MAs.
Moving upwards the token price can be seen facing strong rejection from these MAs. At present, the AAVE token price is trading at the lower band of the Bollinger band indicator after floating to surpass the upper band. Token price has also gone below the 14 SMA. Volumes have increased, therefore investors should remain cautious and wait for a clear signal of bullishness from the demand zone.
The AAVE token price is forming a symmetrical triangle pattern on a daily time frame
Relative Strength Index: RSI curve is trading at the price of 33.85 as the token bounces off the demand zone. At present, the RSI curve has fallen below the 20 SMA. The token is forming higher low and higher high formation on an hourly time frame as the token shows bullishness in the higher time frame. The AAVE token price can be seen moving if it sustains the recent gains and if it does then the RSI curve can be seen moving even higher up supporting the trend. Once the RSI curve crosses the halfway mark of 50, the AAVE token price can be seen moving up quickly.
Moving Average Convergence Divergence: MACD indicator has given a negative crossover as the token gave a breakdown of the demand zone on a lower time frame. The blue line crossed the orange line on the downside. This has resulted in the token price moving down strongly in a 4-hour time frame. The fall in the AAVE token price has been strong and therefore the MACD lines were seen widening. As of now, the token price has bounced off the demand zone, and if the same continues then the MACD line can be seen giving a positive crossover.
Average Directional Movement Index: ADX curve has slipped below the 25 mark as the token price broke the demand zone. As of now, the ADX curve has turned sideways, as the AAVE token price shows some bullishness. Therefore, the AAVE token price can be seen halting on the lower time frame and changing the price structure. Once the token bounces off the demand zone, the ADX curve can also be seen dipping out of the 25 mark.
Conclusion: The AAVE token price is trading at the demand zone, as per the price action. Despite the recent bullishness shown by the AAVE token off the demand zone, the technical parameters are still negative. If the AAVE token price is successfully able to move in uptrend then the technical parameters can be seen turning positive or else it can fall further. Investors should wait for a clear trend and then act accordingly.
Support: $48 and $44
Resistance: $72 and $74