The crypto market is trading with mixed signals today. BTC has hit resistance at $42K, ETH is steering clear of $3K. All the other alts on the chart are trading in red as bears run the market today.
AAVE Price Action
The Aave price study suggests that the cryptocurrency is on a downward trend, with major devaluation occurring in recent days. The price has been continuously declining, and it is now $218, down 13% from its previous high of $250.
The Bollinger band’s top limit is set at $278, which functions as a key resistance. At $201, the Bollinger band’s bottom end, which is important support, can be found.
The market has been dominated by the bears for some time, but with volatility finally rising, the bulls may be able to recover their throne.
Analyst Bullish on AAVE
Smart Contracter, a Twitter user who goes by the handle Smart Contracter, claims that the Aave platform’s native coin has made a higher low, indicating a likely comeback.
AAVE has reached a potential support level, according to the cryptocurrency trader, by touching the 0.618 Fibonacci retracement level, which is used to determine support and resistance levels.
AAVE reached the level, according to Smart Contracter, after rising downwards in a corrective three-wave pattern that followed a bullish five-wave pattern.
He says the green shoots on the weekly chart translated into a great five-wave climb on the daily chart, and now we’ve tapped the 0.618, which he believes will lead to a higher low.
Smart Contracter shows Aave’s upward-trending five-wave pattern and a smaller downward-trending three-wave pattern in the same tweet. According to the anonymous crypto analyst, AAVE is expected to rise against the US dollar and Bitcoin in the near future.