Aave (AAVE) Experiences Downtrend on Weekly Chart Since June 2021

One sentence summary – Aave (AAVE) has been experiencing a downtrend on the weekly chart since June 2021, with the $50 level consistently acting as a support level, and the recent drop below $68.7 indicating persistent selling pressure, but there is potential support in the $52-$55 range and long-term holders still have faith in the project.

At a glance

  • Aave (AAVE) has been experiencing a downtrend on the weekly chart since June 2021.
  • The $50 level has consistently acted as a support level for AAVE since November 2020.
  • AAVE has historically rebounded from temporary dips to the $44-$45 range.
  • The daily chart shows a bearish structure after AAVE dropped below the $68.7 level on July 31.
  • Traders could consider entering the market in the $52-$55 range for a potential buying opportunity.

The details

Aave (AAVE) has been experiencing a downtrend on the weekly chart in recent months, starting from June 2021.

Despite a brief rally in June, where the price rose from $49 to $88, the overall downtrend on higher timeframes remained unaffected.

Since November 2020, the $50 level has consistently acted as a support level for AAVE.

There have been temporary dips to the $44-$45 range due to selling activity.

However, AAVE has historically rebounded from these levels.

The daily chart shows a bearish structure after AAVE dropped below the $68.7 level on July 31.

The Relative Strength Index (RSI) has struggled to surpass the neutral 50 level, indicating persistent selling pressure.

Interestingly, the $50 level aligns with a bullish order block that formed on June 15, adding potential significance to this level.

AAVE showed a positive reaction when it recently retested the demand zone on August 17, suggesting potential support in that area.

The $61.5-$64.8 range represents a strong resistance zone that AAVE has struggled to surpass.

Should AAVE drop to the $40-$50 range, it may present a high probability buying opportunity.

Traders could consider entering the market in the $52-$55 range.

The initial target for such a trade would be the recent low at $69.56, with a more ambitious target at the July high of $88.

Analysis of the mean coin age reveals a trend of upward movement, indicating network-wide accumulation.

Long-term holders do not appear to possess bearish conviction, suggesting continued faith in the project.

Development activity surrounding AAVE has been on the rise, indicating ongoing efforts to enhance the protocol.

A decrease in active addresses suggests a decline in bullish expectations among AAVE investors.

While active deposits have not experienced a significant spike in the past week, monitoring this metric is crucial to assess potential selling pressure.

Despite the ongoing downtrend, Aave (AAVE) presents a complex market situation.

Traders and investors should carefully consider the technical indicators, support and resistance levels, and overall sentiment before making any trading decisions.

Article X-ray

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A downward sloping line gradually descending from June 2021.

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– Aave (AAVE) has been in a downtrend on the weekly chart since June 2021.
The price saw a rally from $49 to $88 in June, but it did not shift the higher timeframe downtrend.
The $50 psychological level has served as support since November 2020.
– AAVE temporarily reached the $44-$45 mark due to selling activity, but it has rebounded in the past.
The daily chart shows a bearish structure after AAVE fell below the $68.7 level on July 31.
The RSI has been unable to climb past the neutral 50 level.
The $50 level coincides with a bullish order block from June 15.
– AAVE saw a positive reaction when it retested the demand zone on August 17.
The $61.5-$64.8 area represents a strong resistance zone.
– A high probability buying opportunity would arise if AAVE falls to the $40-$50 area.
The OBV has remained relatively flat over the past two months despite the downtrend.
– AAVE buyers could consider entering in the $52-$55 area.
The target would be the recent lower at $69.56, with the July high at $88 as a more ambitious target.
The mean coin age has trended upward, indicating network-wide accumulation.
– Long-term holders do not possess bearish conviction.
– Development activity has been on the rise.
The drop in active addresses suggests a decline in bullish expectations.
The active deposits metric did not see a large spike in the past week, but it should be monitored for selling pressure.

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