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AAVE: Short term revival or sustained bullish run?

2min Read

AAVE’s bullish revival has seen the crypto lending token almost reverse all of its Q2 losses.

AAVE: Short term revival or sustained bullish run?

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

  • AAVE climbed high after a retracement to continue the upward trend.
  • Longs were in the majority on the exchange long/short ratio.

Aave’s [AAVE] 53% gains between 16 June and 5 July completely reversed the altcoin’s bearish slide. Using the $51 support level as a springboard, bulls rallied to break past the resistance at $61.4 and $69.3.

Is your portfolio green? Check out the AAVE Profit Calculator

This flipped AAVE bullish on the 12-hour timeframe, as it broke the bearish trendline and lower high. With the crypto market enjoying a bullish revival, AAVE buyers will be moderately confident of registering more gains.

Bulls finally wake up from their slumber

AAVE price chart on dark background with green and red bars

Source: AAVE/USDT on Trading View

The intense selling pressure on AAVE saw it record a 43.7% price drop in Q2 2023. This saw the crypto lending token sink to a year-low of $47.4. However, the bullish order block between $47.4 to $52.1, along with the critical support level, was key to AAVE’s resurgence.

Bulls rallied strongly with a significant bullish candle on 25 June, taking AAVE above the $61.4 and $69.3 resistance levels. Price retraced due to profit-taking but immediately found support on the trendline to continue the upward momentum.

With price trading at $77.4, as of press time, bulls have the $83.6 resistance level firmly in sight. A break in this resistance will offer buyers the opportunity to register a year-high for AAVE.

However, the price action on the daily timeframe showed that bears could yet halt the bullish momentum, especially if Bitcoin suffers a significant price dip.

Meanwhile, the Relative Strength Indicator’s (RSI) reading of 66 highlighted the increasing demand for AAVE as it approached the overbought zone. The Chaikin Money Flow (CMF) was also positive and stood at +0.08.

While the CMF reading was positive, it hinted that big money capital was treading cautiously.

Speculators favor a bullish continuation

Source: Coinglass

Realistic or not, here’s AAVE’s market cap in BTC terms

The four-hour exchange long/short ratio data from Coinglass showed a strong preference of market speculators for more bullish gains in the short term.

As of the time of writing, longs held a 52.62% advantage. With Bitcoin rising above 31K again, AAVE buyers can be confident of further gains in the short term.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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