NewsletterAave Price Jumps 8%; Is This Rally A Bull Trap?
The past three months’ price action of AAVE coin price showed a simple formation of the cup and handle pattern. However, amid the recent sell-off, the AAVE price lost a crucial support of $80, indicating the bullish pattern got invalidated. Anyhow, a sudden price jump today $80, questions the credibility of the aforementioned breakdown,
Key Points:
- A bullish breakout from the $80 barrier could set the AAVE price to reach the $97 mark.
- If the daily candle closing remains below $80, the holders may witness extended correction
- The intraday trading volume in AAVE is $188.8 Million, indicating a 293% gain
Source- Tradingview
The last three-week consolidation phase was part of this bullish pattern, which should have replenished bullish momentum for future gains. However, with the increasing negativity in the market, the AAVE price breached the $80 support, weakening the aforementioned bullish thesis.
Anyhow, today, the AAVE price witnessed a significant inflow and pushed the prices back above the $80 mark. If the daily candle closes above the mentioned level, the prior breakdown will be considered a bear trap or a fake breakdown. Moreover, the aggressive short-sellers who entered the market may face forced liquidation and thus increase the buying orders in the market. If this happens, the bullish thesis will remain intact and so does the cup and handle pattern.
Also Read: Top 10 DeFi Lending Platforms In 2023
Conversely, if the coin price remains below the $80 mark, the sellers will get an additional confirmation for price sustainability at a lower level and may trigger a longer correction phase. The potential downfall may reach $66.5 support.
Thus, the coin holders should wait for today’s daily candle closing as it may significantly influence the AAVE price’s near future.
Technical Indicator
EMAs: the flattish daily EMAs(20, 50, 100 and 200) signals a sideways trendline in the market
RSI: The Relative Strength Index (RSI) is a popular oscillator technical indicator used to measure the strength of an asset’s price movement. Thus, a steady downfall from the RSI slope below the midline indicates the negative sentiment in the market is rising.
AAVE Coin Price Intraday Level
- Spot price: $81.8
- Trend: Bullish
- Volatility: Medium
- Resistance levels: $97 and $116
- Support levels: $80 and $71
- U.S. SEC’s Crypto Task Force Sets Dec. 15 for Privacy Roundtable After Previous Delay
- Grayscale Files S-1 for New SUI ETF After 21Shares’ Successful First Fund Launch
- Do Kwon Faces Up to 12 Years in Prison Over ‘Colossal’ Role in $40B TerraUSD Collaps
- ProShares Drops 3x Bitcoin, Ethereum, XRP ETF Plans After SEC Pushback
- Bitcoin Eyes Fresh Demand as Indiana Advances Bill for Crypto Investments
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
- Is Cardano Price at Risk of a 50% Crash Ahead of the Midnight Launch?
- Is Chainlink Price Headed for $20 as Reserves Pass 1M LINK?
- Ethereum Price Breaks Out of Falling Wedge: Next Target Now Set at $5K
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
