Cryptocurrencies

AAVE Price Retains Gains, But Upside Momentum Threatened

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Written By: Michael Abadha
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    Summary:
  • AAVE price has risen by more than 14 percent in the last week, with a notable spike in whale activity in the last two days. But will it hold?

AAVE price rally continued on Thursday, with the coin gaining 4.8 percent to trade at $112.45 as of this writing.  The coin is on a strong rally, with its gains at 14 percent this week, coming at a time when the wider global cryptocurrency market has been downturn for the last two days. Furthermore, its daily high price of $117.24 was the highest since mid-April, underlining the strong upward momentum. Notably, on-chain data shows that AAVE’s whale activity has risen significantly in the last two days, with about $6.47 million accumulated during that period. That signals a positive sentiment around the coin, which could sustain further gains.

Technical analysis

Momentum indicators

On the 2-hour chart, the Volume Weighted Moving Average (VWMA) is at 109.78. Therefore, the upside will likely remain feasible if the price stays above that mark. A red candlestick has just been formed near that mark, signaling that the upward momentum could be weakening. Also, this narrative is supported by the Relative Strength Index (RSI) indicator, which has recently changed direction and is pointing toward the downward trajectory. However, at 60, the momentum is still in favour of the buyers, although a move around the $110.00 mark, near the current 2-hour VWMA value could signal an impending bearish control.

Support and resistance levels

The momentum on AAVE coin price suggests control by the buyers above 110.70. That will likely result in further gains to find the first resistance at 112.73. However, extended control of the market buy the buyers could build a stronger upward movement to break past that mark and potentially test 115.38. Conversely, the sellers will be favoured to take control if AAVEUSD price breaks below 110.70. In that case, the first support could come at 108.59.  However, extended downside momentum will breach below that level, at which point the upside narrative will be invalid. Furthermore, that could result in further decline to test 106.68.

This post was last modified on %s = human-readable time difference 16:36

Written By: Michael Abadha

Michael is a self-taught financial markets analyst, who specializes in analysis of equities, forex and crypto markets. He draws his inspiration from the fact that markets provide an interface through which the world interacts in search of a better tomorrow.

Published by
Written By: Michael Abadha