AAVE bulls to target $83 next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Defense of the $69.3 support level could spur more gains for bulls.
- CMF indicator highlighted a significant rise in capital inflows.
AAVE continued to build on its bullish trend on the lower timeframes. Despite the pullback occasioned by Bitcoin [BTC] dipping below $31k, AAVE sustained its bullish gains with a successful defense of the $69.3 support level.
Realistic or not, here’s AAVE’s market cap in BTC terms
This kept the altcoin on an uptrend with bulls preparing another approach for the $83.6 resistance level. The current evidence showed that further gains were possible. The indicators highlighted demand behind AAVE, and momentum was bullish on the four-hour timeframe as well.
Bulls display buying strength to sustain uptrend
A recent price report highlighted the remarkable gains registered by AAVE at the end of Q2 that reversed its bearish momentum. While bulls reveled in the gains that led to the capture of the $69.3 support level, the correction in the crypto market between 5 July and 10 July saw AAVE test the new support level twice in quick succession.
However, the buying pressure was sufficient for a bullish rally on both occasions. The recent rally from the $69.3 support level resulted in 10.2% gains for buyers.
The Relative Strength Indicator highlighted the strong buying pressure, as it edged toward the overbought zone with a reading of 65. Significant capital inflows over the past 24 hours saw the Chaikin Money Flow flip from negative to positive. It stood at +0.20 as of press time.
The price action and indicator readings showed a strong bullish intent. If bulls cross the hurdle at the $80 psychological level, they could easily flip the $83.6 to support. However, if Bitcoin dips any further, bears could capitalize to force a retest of the $69.3 support.
On-chain metrics hinted at good profits for buyers
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The Market Value to Realized Value ratio is useful for showing the average profit/loss of all circulating coins, according to the current price of the token. Data from Santiment showed a positive MVRV ratio of 12.87% highlighting the unrealized profits being held by AAVE buyers at the moment.
With the supply on exchanges falling significantly, it showed that bulls were prepared to push on for more gains in the short term.