Aave: Is the bullish rally back on track?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- AAVE bounced back from the $61 support level to maintain its uptrend.
- Longs share of open contracts highlighted the bullish momentum.
Aave [AAVE] halted its bearish slide with a 5% bounce off the $61 support level. Earlier, AAVE’s bullish rally hit a price hurdle at the $70 price zone. This led to a 10.8% retracement which slowed down the bullish momentum.
Read Aave’s [AAVE] Price Prediction 2023-24
An analysis of AAVE by AMBCrypto dated 9 October noted the possibility of sellers benefiting from the price rejection at $70. This analysis played out perfectly with the price retracement.
However, the price rebound from the support level proved the resilience of buyers over the past two days.
Buyers out to sustain uptrend
AAVE’s bullish rally was at risk if the $61 support level crumbled to the selling pressure from the price rejection at the $70 resistance level.
However, bulls put up a solid defense to prop up the uptrend. It is vital to note the On Balance Volume (OBV) maintained its uptrend despite the price retracement. This aided the bullish pushback due to consistent trading volume.
Following the support level rebound, the Relative Strength Index (RSI) stood at the neutral 50 mark after its earlier dip due to the selling pressure. This highlighted the slow return of buying pressure.
With AAVE trading at $64, as of press time, bulls can look to retest the resistance level at $70. A break above this level will open the way for buyers to target the July highs of $75-$80.
On the flip side, another bullish failure at the resistance level could see AAVE fall into a range formation.
How much are 1,10,100 AAVEs worth today?
Bullish bias in the futures market remained strong
The Exchange long/short ratio hinted that bulls retained the long-term momentum in the Futures market. Data from Coinglass showed that longs held a significant 53.15% share of the open contract positions.
This amounted to $12.58 million worth of buying positions, which was $1.49 million more than short positions. As such, the bullish rebound could be sustained, leading to a retest of the $70 resistance level.