Aave price analysis: Bears halt bullish momentum at $89. More downtrend to follow?

The Aave price analysis shows a bearish trend for today. The bears have taken over the price charts once again, and a small deficit in the price level, as market sentiment is bearish towards AAVE/USD. Selling pressure built at the start of today’s session, and the price came down to $88.4, though the price was on recovery up till yesterday, and still there is a possibility that the price may recover in the coming hours.

AAVE/USD 1-day price chart: Can bulls make a comeback?

The 1-day price chart for Aave price analysis shows the price breakup was downwards today, and yet the price is trading towards the negative side. The AAVE/USD pair is trading hands at $88.4 at the time of writing. The price trend was upwards during the past three days, but today the trend has changed. If observed over the past week, then the coin is at a loss of 19.63 percent as the trend was also bearish up till 20 August 2022.

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AAVE/USD 1-day price chart. Source: TradingView

The volatility is increasing for AAVE/USD as the Bollinger bands are diverging, with the upper bank of the indicator traveling to $118.7, representing the strongest resistance, and the lower bank sinking towards the $97 range. The mean average line of the Bollinger bands is still above the price level at the $99.2 mark. The relative strength index (RSI) is hovering in the neutral zone. The RSI started moving upwards after 20 August 2022 and attained an improved position during the past few days. However, RSI is present at index 43 but sinking slowly, indicating a selling activity gaining strength in the market.

Aave price analysis: Recent developments and further technical indications

The 4-hour price chart for Aave price analysis shows a strong correction at the start of the trading session, but later on, considerable bullish efforts have been observed during the last 4 hours. The last candlestick appearing on the 4-hour chart is green, marking a recovery in price levels up to $88.4 at present.

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AAVE/USD 4-hours price chart. Source: TradingView

The moving average (MA) is present at the $88.5 mark on the 4-hour chart, trading above the SMA 50 curve. The relative strength index (RSI) is moving upwards, indicating some resistance from the bullish side, but if the RSI dips, it will be an indication of the price going further down.

Though most of the technical indicators are on the bearish side along with the short-term moving averages, the Hull moving average and the Momentum oscillator are showing signals for buying Aave assets.

Aave price analysis conclusion

The Aave price analysis suggests that despite the fact that most of the technical indications are giving bearish signals but looking at the chart patterns and current RSI behavior, it is safe to assume that the price trend can change in the coming hours as well in the coming days. However, traders should expect a downtrend in the short-term as the price can reduce to the $86 range today.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/aave-price-analysis-2022-08-24/