Connect with us
Active Currencies 14748
Market Cap $2,270,878,340,127.50
Bitcoin Share 53.97%
24h Market Cap Change $-4.38

AAVE gives off mixed signals, but does THIS signal more gains?

3min Read

Amidst a choppy market, AAVE showcases strong performance with a potential golden cross in sight.

Aave gives off mixed signals, but does THIS signal more gains?

Share this article

  • AAVE remained in a bull trend at press time.
  • The asset will see a golden cross if the token maintains its price trend.

Aave [AAVE] ended the past week positively, showing strong performance. However, it has experienced a decline in the last 24 hours.

Despite this recent downturn, indicators suggested that its price could be poised for further uptrend in the coming week.

AAVE shows mixed signals 

According to AMBCrypto, AAVE was trading at approximately $112.37, marking a daily increase of over 1.30%.

The long and short moving averages (blue and yellow lines) were providing support at around $99.86 and $97.67, respectively, suggesting a solid base for its price.

The Relative Strength Index (RSI) is at 60.76, indicating that it is in bullish territory but not yet overbought. This leaves room for further upside before the RSI reaches overbought conditions (typically above 70).

The Moving Average Convergence Divergence (MACD) line is at 1.32, with the signal line at 1.60, both in positive territory. 

Aave price trend with

Source: TradingView

However, despite these bullish indicators, data from CoinMarketCap showed that it was among the losers in the last 24 hours, having lost over 1%.

This recent dip earned it a spot among the top losers, reflecting short-term volatility or profit-taking. Interestingly, AAVE still stood out as the second-highest gainer over the past seven days, with a notable 18% increase. 

Nearing a golden cross

AAVE was positioned for positive price movement at press time, with the moving averages suggesting that a golden cross could form if the price continues to rise.

A golden cross, where the short-term moving average crosses above the long-term moving average, is typically seen as a strong bullish signal.

The next significant resistance for AAVE is around the $120 level, a psychological barrier previously acting as resistance.

If AAVE can successfully break through this level, the next target could be around $130, representing a previous high. Also, it serves as the next logical resistance zone.

While the indicators are predominantly bullish, with the RSI and MACD supporting the case for further upside, traders should be cautious of potential retracements.

In the event of a pullback, AAVE could find support around the long moving average at $99.86 and the short moving average at $97.67. 

However, if AAVE breaks below these moving averages, it could signal a shift back to bearish sentiment. The price could test the $90 level, where previous support was established.

Holders enjoy profits

An analysis of AAVE’s 30-day Market Value to Realized Value (MVRV) revealed that holders were profitable at press time.

The MVRV climbed above zero on the 13th of August and has remained in positive territory since then. As of this writing, the MVRV stood at approximately 10.45%, per Santiment data.

Aave MVRV

Source: Santiment


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


This trend indicated that holders who purchased AAVE within the last 30 days hold an average profit of over 10%.

A positive MVRV ratio typically reflects strong market sentiment. It suggests that the current holders are not only in profit but also confident in the asset’s value.

Share

Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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.