AAVE Price on the Brink of a Breakout as Bullish Signals Emerge
The AAVE price has been displaying unpredictable fluctuations over the past hours.
The lion’s share of traders is on edge, trying to decipher whether the crypto presents a lucrative opportunity for their portfolio or if it’s a slippery slope.
Technical Indicators
The Moving Average Convergence Divergence (MACD), a trend-following momentum indicator, reveals positive divergence for the AAVE price. After starting with a MACD Value representing a bearish trend at -1.0422290223298774, it quickly made a shift upwards and concluded at 0.3589656725969803. This increasing MACD alludes to buying pressure in the network, indicating that the AAVE price could be on the cusp of a bullish run.
Hourly chart for AAVE/USD (Source: GeckoTerminal)
Simultaneously, the Exponential Moving Average (EMA) portrays a positive picture. The 9 EMA has risen from $272.96 to $276.03, while the 20 EMA moved from $273.69 to $275.15. This upward trajectory of both EMAs further confirms the potential of a bullish trend.
Lastly, the Relative Strength Index (RSI), which measures the speed and change of market movements, sits at 57.93, closer to the upper bound of 70. Such an elevated RSI is a hint of an overbought market and might suggest a possible correction soon.
As for the support and resistance levels, the AAVE price shows clear resistance at $281.31, $286.54, and $291.06, while the support level lies at $273.91, $271.58, and $269.89. The current price hovers near the first support level, making it a critical area to watch. If AAVE manages to break above the resistance level of $281.31, we can foresee a bullish run. However, if it fails and breaks below the support level, a bearish trend might ensue.
Maple Price Forecast and Trading Strategy
Given the mixed signals between MACD, EMA, and RSI, traders need to be extra cautious. For long traders, an ideal entry point would be once the AAVE price breaks above the initial resistance level of $281.31, confirming a bullish trend. Meanwhile, short traders should consider getting in once it breaks below the support level of $273.91, signaling an impending bearish route.
Judging by the aforementioned technical indicators, there is a higher likelihood that AAVE/USDT may turn bullish soon, but always remain wary of the volatile nature of cryptocurrencies.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
