For more than six months, the AAVE token price has been resonating between the $450 and $160 mark, indicating a sideways rally. Its recent recovery from the latter half of December 2021 surged 75% to the $280 resistance. However, the major technical acting as resistance could dumb the price back to $160 support.
Source- Tradingview
Past Performance in AAVE token chart
In September 2021, the token initiated a retracement phase from the $420 resistance zone, aiming for the bottom support near $160. A descending trendline leads this short-term downtrend by acting as a dynamic resistance level.
On December 15th, the pair plunged to the $160 support, indicating a 64% loss from the top resistance of the range. The token experience intense demand pressure from this support resulted in a quick recovery to the $280 mark.
AAVE Token Displays A Rounding Bottom Pattern.
Source- Tradingview
The AAVE token price is currently struggling to overcome the $280 mark. A confluence of the resistance trendline and 200 EMA indicate this level as a strong area of interest that would require a significant amount of buying pressure to make a breakout. However, the technical chart shows several higher price rejection candles at this resistance, suggesting another possible bearish reversal.
On a contrary note, the 4-hour time frame chart shows the formation of a cup and handle pattern. This pattern could help the price breach the descending trendline, providing an excellent long signal that could climb to the $446 mark.
By the press time, the AAVE token is trading at $278.5, with an intraday gain of 3.51%. The 24hr volume change is $540.7 Million, indicating an 86.5% hike. According to Coinmarketcap, the token stands at 46th rank with its current market cap of $3.69 Billion(+5.78).
Technical Indicators-
-The daily Relative Strength Index(60) shows impressive recovery in its chart, crossing above the neutral line and 20-SMA.
– The sideways trend in the AAVE token has flattened the crucial (100 and 200 EMA). Moreover, the price is still trading below the 200 EMA, indicating a bearish trend for this token. However, the recent rally has filled the dynamic resistance into possible support.
-The traditional pivot shows remarkable confluence with the daily AAVE/USD chart level. According to these pivot levels, the crypto traders can expect the nearest resistance at $298, followed by $330. As for the opposite end, the support levels are $265 and $230.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/aave-price-analysis-a-descending-trendline-threatens-bearish-reversal-in-aave-token/