AAVE traders can hope for more gains as buying pressure gains momentum
AAVE could extend its bullish rally by flipping the $70 resistance level as funding rates highlighted growing dominance of long traders.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- AAVE rallied strongly from the $61 support level with 10% gains over the past day.
- The funding rate remained positive with longs in the majority.
Aave [AAVE] pulled off a strong 10% rally from the key $61 support level. This took the altcoin to the edge of the $70 resistance level with buying pressure continuing to rise.
Read Aave’s [AAVE] Price Prediction 2023-24
AMBCrypto had previously predicted the possibility of AAVE going on a bullish run after buyers showed their resilience to halt the bearish retracement at $61. This analysis was validated with the recent price pump.
Meanwhile, Bitcoin [BTC] consolidated its bullish gains above $29k with the possibility of touching $30k in the coming days.
Can bulls flip the $70 resistance?
The Relative Strength Index’s (RSI) reading of 68 highlighted the significant buying pressure on the 12H timeframe. This hinted at a continuation of the bullish advance toward the critical resistance level.
Likewise, the On Balance Volume (OBV) registered an uptick to signal that more buyers were looking to ride the bullish momentum.
Despite the bullish momentum, the $70 resistance level has proven a tough hurdle for buyers. Price was rejected twice at the level on 2 October and 5 October. However, buyers will be confident that the bullish market conditions could result in more gains.
If bulls are successful in flipping the resistance, additional gains can be found at $75 to $80. Yet, another price rejection at the resistance level could keep AAVE stuck in a range between $61 and $70.
Shorts wrecked by price pump
Data from Coinglass revealed that AAVE sellers were caught out by the price pump over the past day. $309.98k worth of short positions were wrecked, amounting to 76.86% of the total liquidations.
How much are 1,10,100 AAVEs worth today?
This had a ripple effect on the funding rate which stayed largely positive, despite a slight dip. It showed that long traders were in the majority and AAVE could hit another bullish milestone in the short term.
