Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The first leg of AAVE recovery faltered above $65.
- Open Interest rates didn’t drop much as of press time.
Aave [AAVE] has been consolidating recent recovery gains above $61. The retracement towards a crucial demand at $60 at press time could give bulls another opportunity if Bitcoin [BTC] doesn’t record more losses.
How much are 1,10,100 AAVEs worth today?
At press time, BTC was worriedly at a crossroads at the short-term support of $26.4k. A crack in the support could cause sellers to extend losses to the range-low. Consequently, a reclaim of the $27k could give bulls slight leverage.
Will the bulls see a reprieve?
Source: AAVE/USDT on TradingView
The RSI faced rejection at the overbought area and retreated towards the median 50-mark. It underscores the eased buying pressure as the price dropped towards the demand zone and daily bullish order block (OB) of $57.4 – $61.6 (cyan).
But the CMF extended its steady rise above zero, indicating capital inflows were substantive in the past few days. So, the demand zone could ease the reversal, especially if BTC doesn’t extend losses beyond the range low of $25.8k.
So, AAVE could rebound at the demand zone, and the immediate targets will be $65 and the previous bearish OB of $66.5 – $70.7 (red).
A drop below the demand zone and 50-EMA (Exponential Moving Average) could cause AAVE to drop to $56 or $52.
Open Interest rates steadied
Source: Coinalyze
The surge in Open Interest rates, seen from 15 September, didn’t retreat extensively with a price drop. It shows demand in the derivatives market steadied despite the price reversal. Besides, the long-term price action was “uptrend,” as shown by the positive ASI (Accumulative Swing Index).
Is your portfolio green? Check out the AAVE Profit Calculator
Meanwhile, the CVD (Cumulative Volume Delta) headed southwards, indicating sellers had market leverage at press time.
So, bulls could wait for a convincing bounce at the demand zone before going long on the asset.
