Declining Volumes Indicates Consolidation; $90.0 Remains Key Level

The AAVE price analysis indicates consolidation with no clear directional bias. The price is struggling to catch up with the single-day fall that happened on August 19. To do so, the buyers made a come back near the lower levels as indicated by the formation of the multiple Doji candlesticks.

However, the critical upside barrier remained at $90.0.

The AAVE coin displayed an impressive rally from the lows of $45.58, an appreciation of nearly 157%.

As of publication time, AAVE/USD is exchanging hands at $87.91, down 0.55% for the day. The 24-hour trading volume held at $183,655,507 with more than a gain of 21%. A stable price with increased volumes indicates consolidation is happening.

• AAVE price consolidates near the higher level following three days of recovery.
• Strong resistance is placed at $90.0 capping the upside gains.
• The formation of Doji indicates indecision among investors, implying a cautious approach.

AAVE price consolidates

On the daily chart, the AAVE price analysis shows sideways movement.

AAVE  is trading in a “Rising Channel” pattern, forming higher highs and higher lows. A classic bullish formation.

Currently, the price is hovering near the support level of the channel. AAVE took a deep dive from its recent swing high to its recent lows with a more than 25% fall, between August 13 to August 20.

 The price has been consolidating near its support level for the last four days, with declining volumes. The volumes are below the average line and declining, with the price moving upwards, which implies a  worrisome. When the market is rising while volume is declining, big money is not the one buying, more likely slowly exiting positions.

A daily close above $90.0 would be a critical milestone in the recent price action. The bulls would be further motivated to test the psychological $100.0 mark.

On the other hand, a break below the session’s low would be a relief for the bears. If that occurs, the price would find the downside target at $80.0.

AAVE on the four-hour chart formed a “Bullish Shark” harmonic pattern.

In the pattern, the second top is higher than the first one. In addition, it combines Fibonacci with Elliott’s waves theory, and some new ratios like 88.6% are used. Along with this bullish pattern, the price hasn’t broken its previous swing low as well, indicating a possible reversal in the short term. 

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The nearest support is the previous swing low, which is $76.5, whereas the nearest resistance could be found at $94.0. There is a higher probability of the price breaking the resistance level. “Buying on dips” is the best course of action we can go with.

On the other hand,  a sustained selling pressure below the $85.0.5  level could invalidate the bullish outlook. And the price can move toward $76.5.

AAVE  looks slightly bullish on all time frames. Above $90.0  closing on the daily time frame, we can put a trade on the buy side.