Analyzing Aave’s Bearish Pattern: What You Need to Know
An analyst recently pointed out that Aave is currently forming a bearish pattern that has resulted in significant drawdowns during the last four occurrences. Here’s what you should know about this development:
- A TD Sequential signal has been identified in AAVE’s 1-day price chart
- The TD Sequential indicator helps predict potential reversals in an asset’s price
- It consists of two phases: setup and countdown
- Aave has completed the setup phase of the TD Sequential signal
- This typically leads to a sell signal based on the color of the preceding candles
- Historical data shows that Aave experienced an average drop of 27% after previous instances of this signal
- Despite the bearish pattern, Aave has seen increased network activity
- The number of active addresses has reached a yearly high
Current State of AAVE Price
After a recent significant rally, Aave has surpassed the $134 price level. Despite the potential bearish signal, the coin’s price has shown resilience and continues to attract investor interest.
Hot Take: What’s Next for Aave?
As Aave forms a bearish pattern, investors should closely monitor the price action to determine the coin’s future trajectory. The historical data suggests a potential downturn, but positive network activity could provide some support amidst market uncertainty. Stay informed and proceed with caution in your decision-making regarding Aave.
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