Aave Below Its Long Term Support; What To Expect Now?
May 12 2022 - 10:00PM
NEWSBTC
Aave has been on a downtrend since April amidst intense volatility
in the market. Major altcoins have extended losses owing to a major
sell off all across the cryptocurrency industry. Over the past
week, the coin presented lower lows and displayed intense selling
pressure. The altcoin has also experienced high trading volumes
which was tied with increased selling pressure. This has also added
to the falling market value of the asset on the one day chart. Fall
from the current price level would mean Aave could soon eye the
support region of $50. Aave has been among the top losers in the
industry with a loss of over 51% in the past one week. Aave Price
Analysis: One Day Chart Aave was priced at $74.80 at the time of
writing. The altcoin traded at this price level a year ago in
January. The downtrend for Aave seems strong because the altcoin
just broke below its long standing support line of over a year.
Chances of a price reversal cannot be ruled out yet because the
altcoin has broken below its descending trendline. Often after a
sharp fall, prices make a turn around. In case of a price revival,
Aave could target $111. Another fall from its present price level
would make the altcoin trade near the $61 support line and then
hover around the range of $50. As mentioned above, the trading
volume rose and was seen in red signifying bearishness in the
market. Technical Analysis Aave was in middle of a sharp sell-off,
the coin hadn’t registered the same selling pressure in the last
one year. This reading shows excessive bearish pressure in the
market. On the Relative Strength Index, the indicator stood close
to the 20-mark, this meant oversold condition for the coin. Aave
last hovered at this point in the month of December 2020. Bollinger
Bands that display volatility showed chances of volatility. The
bands expanded which are an indication of increased price
volatility. Related Reading | TA: Bitcoin Breaks $30K, Why This
Could Turn Into Larger Downtrend Awesome Oscillator depicts the
price momentum of the market. On the one day chart, the indicator
was seen below the half-line. It displayed amplified red signal
bars which was a sign of bearish price action. Only in the case of
buyers resurfacing can Aave try to display recovery on charts. The
chances of revival over the immediate trading sessions seem weak as
strength from the broader market is required. Chaikin Money Flow
displays capital outflows and inflows. On the chart, the indicator
was seen below the half-line and it continued to move southbound as
capital outflows exceeded capital inflows. Related Reading |
Bitcoin Exchange Inflows Hit Three-Month High As Market Braces For
More Downside Featured image from UnSplash, chart from
TradingView.com
TRON (COIN:TRXUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
TRON (COIN:TRXUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024