Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Sellers curtailed bullish advance with rejection at key price level.
- Bullish momentum was still present, as evidenced by short-term dominance in the futures market.
Aave [AAVE] experienced a double price rejection at the $70 resistance level over the past 72 hours. The bullish rally failed to cross the significant price hurdle, which meant that AAVE’s bearish market structure persisted on the higher timeframes.
How much are 1,10,100 AAVEs worth today?
In the meantime, Bitcoin [BTC] briefly touched $28k before dropping to trade at $27.8k, as of press time.
Buying pressure wanes at a critical price level
Source: AAVE/USDT on Trading View
The Relative Strength Index (RSI) highlighted the loss of bullish pressure after the strong rally from the $61 support level. The RSI dipped under the neutral 50 mark, hinting at increasing selling pressure.
AAVE could retest the $61 support level in the coming days if the selling pressure persists. However, if BTC crosses $28k, this could spur another wave of bullishness across the market, with AAVE buyers looking to flip the $70 level to support.
If bulls successfully cross the $70 hurdle, it would overturn AAVE’s market structure from bearish to bullish on the higher timeframes, with buyers able to push for more gains at $75 to $80.
Meanwhile, investors adopted a conservative approach, with the Chaikin Money Flow (CMF) revealing a large outflow of capital with a reading of -0.15.
Futures market pointed to another wave of bullish momentum
Source: Coinglass
Read Aave’s [AAVE] Price Prediction 2023-24
The short-term momentum remained with bulls in the Futures market. Data from Coinglass showed that longs held a significant 53.38% share of the Exchange Long/Short Ratio. This amounted to $3.36 million worth of buying positions.
As such, a near-term recovery could be triggered, leading to a retest of the $70 support level.
