The Aave price at $320.00 is fast approaching a must-hold level. Previously $277.00 has been the dip to buy, but will it be different this time around?
Aave has followed a similar path to many altcoins this year, especially those linked to decentralized finance (DeFi).
The year started well, with a 700% rally to an all-time high of $628.65. Within three weeks, the Aave price had lost 55% and was trading at $277.40.
Over the next two months, a volatile trading period saw the price back $495.00, followed by another reversal—the -40% correction from $495.00 bottomed out at $266.66.
Only this time, the Aave price embarked on a furious rally, a rally we correctly called, eventually setting an even higher record of $707.67. This came on Tuesday the 18th of May. We all know what happened the following day.
Therefore, it’s fair to say that $277.00 has been “THE’ place to buy the token over the last 3 months. Now with the price heading back there, is it still a good buying opportunity?
The 4-hour chart highlights the horizontal support level well. It also shows an ascending trendline, which is currently at $190.00. The trend has been in place since November and was a good level of support in late 2020.
The is a start difference between now, and the previous times the $277.00 support was tested.
On the previous occasions, the overall Cryoptocrruency market was still enjoying a bull run. That is certainly not the case now. There are increasing signs that the broader liquidation may not be over.
While the price may see a technical bounce from $277.00, it may not be of a similar velocity to previous times.
A failure to hold the $277.00 support could see the Aave price encounter further liquidation. If i see it as an important support level, its likely that other market participants agree.
The downside target then becomes the trend line support -30% lower, at $190.00.
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