Analysis
Aave crypto gains 38.25% in 24 hours as DeFi inspires market confidence
The DMI showed a strong uptrend in progress after the quick recent gains.
- High trading volume and intense momentum spurred Aave crypto higher.
- The token is primed for a move beyond the psychological $200 level soon.
Aave [AAVE] has rallied 44.9% since Tuesday the 5th of October’s open, after testing the 50% retracement level at $125 a day earlier.
In an earlier AMBCrypto report, it was highlighted that the higher timeframe price action meant that AAVE’s bias was strongly bullish.
However, the quickness of this bullish reaction wasn’t anticipated.
It appeared that the DeFi sector as a whole was buoyed by the pro-crypto U.S. president for the next four years, as DeFi tokens saw 30% or higher gains in recent days.
Aave breaks structure on high volume
Source: AAVE/USDT on TradingView
The current day’s trading, if it closes above $180.74, will mean a bullish market structure break on the daily chart for AAVE.
After the retracement toward $125 since mid-September, and failing to rally while Bitcoin [BTC]
climbed higher, this break could vindicate HODLer conviction.The Awesome Oscillator still showed that momentum was weakly bearish, owing to the recent downward momentum of the altcoin before the bounce.
Another encouraging sight was the OBV knocking on the doors of a local high from September.
The DMI showed a strong uptrend in progress as the ADX (yellow) and the +DI (green) both moved past 20. From a price action perspective, the next take-profit targets are $245 and $290.
Consolidation phase for Aave crypto?
Source: Coinglass
AMBCrypto found that the retracement toward $125 collected a fair amount of liquidity on the 3-month look back heatmap. The $103 pocket was untested.
AMBCrypto’s examination of the 3-day chart showed that, even as prices leapt higher, the liquidity at $130 grew thicker.
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The price action of the late hours of the 5th of November spurred more and more traders to go long. The swift move beyond the two-month highs saw new bands of liquidity build at $167, $179 and $191.
The $179 and $191 area could form a short-term range, giving Aave crypto a chance to recuperate before its next impulse move higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
