August 14, 2022
  • August 14, 2022

$ 350 AAVE rally hinges on this vital support

By on July 23, 2021 0

The Aave price slumped to a low of $ 211 on July 20, losing 39% from the July 6 high of around $ 348. During this decline, the AAVE shifted the 50, 100 and 200 day SMAs (simple moving average) from support to resistance. Tuesday’s red market rallied the buyer who is determined to push the token into areas around the psychological level of $ 350.

AAVE remains dynamic for two consecutive days

AAVE bulls have found a support wall of $ 220 and have pushed the Aave price up to $ 280 in the past two days. During this rally, the Aave bulls have shifted the 50 days, 100 days and 200 days of resistance to support while recording higher highs and lows at the close of each trading session on the chart. four o’clock.

The moving average convergence divergence adds credibility to this bullish narrative by its position above the signal line. Note that the Aave price pull will be sustained if the MACD stays above the zero line in the positive zone.

Additionally, the SuperTrend indicator issued a crypto sell signal on Wednesday that coincided with the crossing of the MACD line (blue) above the signal line (orange), which is also a sell signal. This saw buyers flooding the market to push the Aave price into areas above $ 280.

At the time of writing, the AAVE is hovering around $ 281 as buyers appear to be in control of the market. This is a 33% increase from the July 20 low of $ 211.

Four hour chart of Aave prices

Aave faces massive upward resistance

The four-hour Aave price chart shows that bulls need to overcome key resistances to keep the rally at $ 350. Note that a candlestick close above the resistance level of $ 290 will add momentum to the upward pull until the AAVE meets a major resistance area at $ 310. Aave’s rejection at this level could cause the bulls to retract for support at $ 290 before retesting the $ 310 resistance level.

Overcoming this hurdle will see the Aave price test again the July 12 high at $ 322 and even the July 6 high at $ 348 before hitting $ 350.

On-chain In / Out of the Money Around Price (IOMAP) metrics accentuate the hurdles that the Aave price must overcome on the upside. From the IOMAP model, it is clear that the AAVE is facing immediate resistance between $ 281 and $ 290. In this area, approximately 2.84 million addresses have previously purchased 3.3 million AAVE. Beyond this level, AAVE will be among the next cryptocurrency to explode.

Aave IOMAP Prize

On the flip side, AAVE bulls need to defend the crucial $ 274 support area to make sure the price doesn’t drop.

Note that a candlestick close below this level will invalidate the rally to the upside forcing the Aave price to retest the support levels at $ 248 and $ 225 before dropping to the July 20 low of $ 211.

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