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Cryptocurrency News Articles
AAVE (AAVE) Price Prediction: Bulls and Bears Battle for Supremacy as the Token Attempts to Break the Ascending Channel
Oct 14, 2024 at 12:00 am
AAVE [AAVE] rebounded over the weekend after China's new economic stimulus spurred gains across the cryptocurrency market.
After China's new economic stimulus helped the cryptocurrency market rally over the weekend, AAVE [AAVE] rebounded. In the last 24 hours, AAVE has gained nearly 7% to trade at $154 at press time.
These gains helped the token recover from a muted performance earlier in the week.
Following this uptrend, AAVE broke out of the midline of its ascending parallel channel on the one-day chart, indicating that the bulls are gaining strength.
For AAVE to break the upper boundary of this channel, it will need buyer support.
The three consecutive green volume histogram bars showed that buyers controlled the price action, which helped AAVE break out above the midline.
Moreover, the on-balance volume (OBV) indicator has been sloping upward. This indicator also crossed above the smoothing line, indicating that the crowd is turning bullish.
For AAVE to break out above the ascending channel and confirm the bullish thesis, it will need to overcome resistance at the 0.236 Fibonacci level ($170).
Conversely, this pattern will be invalidated if the price drops below support at $134.
AAVE exchange outflow data is bullish
Buyers could continue to outnumber sellers, as exchange inflow data showed that traders are withdrawing their AAVE from exchanges at a high rate.
On October 12, exchange outflows reached a one-month high, indicating an unwillingness to sell.
If more traders are withdrawing their tokens from exchanges, it could alleviate short-term selling pressure, paving the way for a strong bullish trend.
These technical indicators are bearish
A look at the Chaikin Money Flow (CMF) showed that capital was still flowing out of AAVE. At press time, the CMF had a score of -0.17.
This indicator also formed lower lows despite the price gain, indicating that the current trend is weak.
The Moving Average Convergence Divergence (MACD) is below the signal line, also indicating a bearish bias.
However, the MACD line is tipping north, and if it crosses above the signal line, it will confirm that the altcoin has entered an uptrend.
A look at the Long/Short Ratio
The long/short ratio on Coinglass showed that derivative traders were bearish.
In the last 24 hours, this ratio has dropped from a neutral level of 1 to 0.87, indicating that market participants are not convinced about a sustained uptrend.
On Binance, the accounts taking long positions have dropped dramatically, from 60% to 47%. Meanwhile, short accounts on AAVE have increased from 39% to 52%.
The changes in this ratio showed that after AAVE started gaining, traders increased their short positions, indicating a belief that the uptrend could fail.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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