Connect with us
Active Currencies 17902
Market Cap $3,738,283,379,949.30
Bitcoin Share 60.45%
24h Market Cap Change $-5.10
Analysis

AAVE price prediction – Why traders should expect a 8% drop on the charts soon

2min Read

AAVE’s 4-hour chart suggested more losses may be incoming soon.

Posted:
Avatar
Journalist
AAVE price prediction - Why traders should expect a 8% drop on the charts soon
Avatar
Journalist
Posted:
Share this article

  • AAVE’s indicators revealed a slowdown in buying pressure over the past ten days
  • A drop below $260 will be an early warning sign of a deeper dip towards the range lows

An AAVE whale bought $15M of the altcoin after its dip to the $239-mark. This dip was seen as a buying opportunity, with AAVE rallying by 10% soon after. This, before the crypto retraced again at press time.

Rising capital inflows seemed to support the bullish bias at press time though.

AAVE’s bullish trend stalls at the $280-mark

AAVE 1-day Chart

Source: AAVE/USDT on TradingView

On the 1-day chart, AAVE has had a bullish market structure since 08 May. The structure break was highlighted in green and since then, the altcoin has made higher highs and higher lows.

That uptrend has not changed, but over the past two weeks, the price set equal highs and equal lows. This short-term range formation may be worth a closer examination. On the D1 timeframe, the A/D indicator did not seem to reverse its trend either.

This could be a sign of steady buying pressure behind the token, although this demand slowed down over the past ten days. The CMF also reflected a similar finding. It was still at +0.06 at press time, showing significant capital inflows. And yet, it dropped to this value from +0.23 on 25 May.

Meanwhile, the RSI also underlined bullish momentum. A crossover below the neutral 50 line could be a warning of a trend reversal.

AAVE 4-hour chart

Source: AAVE/USDT on TradingView

The 4-hour chart highlighted a range formation (white) in play over the past two weeks. This range extended from $240 to $280, with the mid-range level at $260. At press time, the price had fallen below below the mid-range level.

Finally, the A/D indicator and the CMF showed steady buying pressure. The RSI was at 49.3, underlining that bearish momentum had begun to gain strength.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

 

Previous:
Next:
Share
Avatar
Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.
Thank you for subscribing to Unhashed.