Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
Aave has been on a Moon mission on the charts for the reason that launch of AAVE V3 in mid-March. The near-term market construction was strongly bullish. The upper timeframes additionally confirmed that the breakout previous the $200 space was technically necessary. It appeared doubtless that Aave would hold this momentum up within the days to come back.
In deep blue is a trendline resistance stretching again to August 2021. Previously few days, this practically eight-month trendline resistance line had lastly been damaged. It was a bullish improvement. Since mid-March, AAVE has had a bullish outlook on the charts, and this improvement additional bolstered bullishness.
Fibonacci retracement and extension ranges (yellow) had been plotted based mostly on AAVE’s transfer from $158.6 to $210 and confirmed the 61.8% and 100% extension ranges to lie at $241.8 and $261.4. The value has lately been rejected on the $261 stage.
$241, $224 and $210 are locations the place AAVE may finish its retracement and proceed shifting upward as soon as extra.
The hourly RSI continued to stay above impartial 50 to indicate that bullish momentum was nonetheless current. The Stochastic RSI descended to oversold territory, and brought collectively they recommended a bounce may happen on the $241 stage.
The CMF was nicely above the +0.05 mark, whereas the OBV has additionally been climbing up to now few days. Therefore, we will conclude that robust shopping for stress was current at press time.
The momentum and quantity indicators gave a constructive view of bullish value developments for the subsequent few days. A retracement to $224 or $210 can’t be dominated out, however on the time of writing, it appeared just like the $240 space may see AAVE bounce increased.
Even within the occasion of a deeper correction towards $200 for AAVE, the upper timeframe charts recommended that bulls had been nonetheless in management. The transfer above $150 and $192 was an necessary occasion that ideas the steadiness in favor of the bulls and demarcated the $200 space as a requirement zone with shopping for alternatives. To the north, a breakout previous $260 will set the subsequent goal of $312 (200% extension) for AAVE.