AAVE extended its southward movements on its daily chart after witnessing renewed selling momentum around the 38.2% FIB resistance. The exponential moving average prohibited buying rallies as they kept the overall trend under bears’ control.
The prevailing bearish pennant breakdown might secure bounce-back chances from the nearest support. That might see buyers striving to explore the $23.6 mark. While publishing this post, AAVE changed hands at $56.216.
AAVE 1Day Timeframe
The alternative token stretched long-term tilts as it struggled to overpower the shackles of the 8-month trend-line resistance. Meanwhile, breaking beneath the bearish flag had AAVE on a 57% slump within the following 11 days. That saw the alternative token crashing towards 19-month lows on June 18.
For now, the price action might dip into a potential squeeze period around $58 – $60 as the POC (Point of Control) stifles bearish efforts. Moreover, the exponential moving average ribbons remain highly southbound. So, AAVE sellers have confirmed their vigor amidst the prevailing market structure.
Decisive recoveries past the 23.6% zone would clear the path to explore the 20 Exponential Moving Average before hitting 38.2%. Nevertheless, any slide beneath $54 might trigger the pessimistic $49 retest. After that, buyers can emerge to inflict near-term rallies.
Reasoning
The Relative Strength Index’s higher troughs indicated easing selling momentum. Nevertheless, the indicator should secure a massive closing beyond the 40 resistance to ensure realistic possibilities of toppling the equilibrium.
Surprisingly, the Chaikin Money Flow (CMF) climbed beyond the zero mark to highlight increased money volumes. A sustain beyond this level will bolster buyers in triggering upswings to test the 38.2% FIB zone in the coming days. However, ADX indicated a significantly feeble directional bias for the alternative token.
Final Thought
AAVE might witness a squeeze phase around the Point of Control as the pessimistic pennant’s breakdown approached the support at $54. That would see buyers striving to hit the 38.2% Fibonacci mark.
Nevertheless, AAVE boasts a massive 93% monthly correlation with BTC. Thus, enthusiasts should watch the leading crypto to execute profitable bets.
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