TL;DR Breakdown
- Aave price analysis is bearish today.
- AAVE/USD is currently trading at $260.
- Closest support at $255.
Today’s Aave price analysis is bearish since we’ve just seen an upside bid rejected after a rise this morning. As a result, before continuing to fall later today, AAVE/USD will most likely establish another lower high. If the bulls have success pushing higher today, we should look for a support test around $255. I think that if this is broken, it will likely lead to a new lower low going into the weekend. However, to do this, the bears need to make sure they can keep prices below $275 for most of the day.
The Bollinger bands for AAVE/USD have contracted a bit in the same way as they were yesterday, but it seems like the lower high has put pressure on them to compress. So far today, we have seen two periods where prices have been above the upper band and one period where prices have been below it. In addition to this, there appears to be a large amount of volatility within the band, given that we’ve had three candles with closes outside of it already today.
An upside bid is rejected after an hour or two of climbing. What happens if the price increases? If the price we’re able to increase higher today and break above $280, I would expect another possible resistance test at $300 (or even as high as $325). I think that this will probably happen if the bulls can push AAVE/USD to the upside.
AAVE/USD 4-hour chart: AAVE to move lower again?
On the four-hour chart, we can see that the Aave price is currently resisting further upward momentum, which may indicate a forthcoming decline later today.
Aave price action has continued to deteriorate over the past week. From November 9’s previous major swing high of $345, AAVE/USD has tumbled by almost 25% to its present low of $255.
The market rallied significantly overnight, as a slightly higher low was established above $255 yesterday. After a morning surge, bulls could not reach the prior day’s local swing high of $280.
Over the previous hours, we’ve seen resistance for further gains around $275, which implies that another low has been made. Following that, we expect the Aave price to descend yet again and possibly break below the $255 support.
Aave Price Analysis: Conclusion
The bearish trend of Aave’s price analysis is continuing today, as we anticipate a reversal to come in the next hours, bringing us back to the downside. As a result, the AAVE/USD pair should resume testing the low established on January 18 at $255.
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