AAVE Consolidates as Traders Await Potential Breakout
AAVE has remained within a narrow trading range of $54 to $60 over the past three weeks, creating a coiled pattern that suggests a potential breakout. Currently trading at $56.51, AAVE is slightly above the 20-day EMA at $57.13, which has acted as a strong resistance level.
The 50-day EMA at $60.69 and the 100-day EMA at $63.54 indicate longer-term resistance levels. The RSI has seen a slight improvement in buying pressure, but remains below the 50 midpoint, indicating caution. The MACD histogram shows a subtle increase, suggesting that bulls may be gaining control.
To confirm a bullish trend reversal, AAVE needs to break above the 20-day EMA and surpass stronger horizontal resistance levels between $58.28 and $59.82. On the downside, support lies between $53.70 and $54.53.
Hot Take
Although there are early signs of bullishness, the overall technical outlook for AAVE remains bearish. Traders should closely monitor support and resistance levels and adjust their strategies accordingly as AAVE’s price action unfolds.
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