Aave price plunged to a low of $ 211 on July 20, down 39% from the July 6 high of $ 348. During this decline, AAVE turned the 50-, 100-, and 200-day Simple Moving Average (SMAs) from support to resistance. Tuesday’s red market rebounded with the buyer determined to push the token into areas around the $ 350 psychological level.
AAVE stays going for two days
AAVE bulls found support at the $ 220 support wall and have pushed Aave price up to $ 280 in the past two days. During this rally, the Aave bulls flipped the 50-day, 100-day and 200-day price from resistance to support as they posted higher highs and higher lows on the 4-hour chart after each trading session was closed.
The divergence of the moving average convergence gives credibility to this bullish narrative through its position above the signal line. Note that if the MACD stays in positive territory above the zero line, the Aave price traction will be maintained.
In addition, the SuperTrend indicator blinked a crypto sell signal on Wednesday, which coincided with the crossing of the MACD line (blue) above the signal line (orange) which is also a sell signal. This caused buyers to flood the market to push the Aave price into areas above $ 280.
At the time of writing, AAVE is trading at around $ 281 as buyers appear to be controlling the market. This is a 33% increase from the July 20 low of $ 211.
Aave price four hour chart
Aave faces massive upward resistance
The Aave price four hour chart shows that the bulls will have to overcome important resistance to sustain the rally at $ 350. Note that a candlestick close above the USD 290 resistance level will fuel upward traction until AAVE encounters a large resistance zone at USD 310. Aave’s rejection at this level could cause the bulls to retreat to support at $ 290 before retesting the $ 310 resistance level.
Overcoming this hurdle will cause Aave price to retest the July 12th high at $ 322 and even the July 6th high at $ 348 before hitting $ 350.
The on-chain metrics In / Out of the Money Around Price (IOMAP) emphasize the hurdles that the Aave price has to overcome. It is clear from the IOMAP model that AAVE faces immediate resistance in the $ 281 and $ 290 area. In that zone, approximately 2.84 million addresses previously purchased 3.3 million AAVE. Beyond that level, AAVE will be one of the next cryptocurrencies to explode.
On the flip side, the AAVE bulls will have to defend the crucial support area at $ 274 to ensure the price does not go down.
Note that a candlestick close below this level will invalidate the upward rally as it will force Aave price to retest the support levels at $ 248 and $ 225 before falling to the July 20th low of $ 211.
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Crypto Analyst and Technical Writer Nancy is a successful crypto analyst and content writer with extensive experience in finance and blockchain. Nancy produces high quality content for websites in the cryptocurrency industry, including Krptotrends. She is a certified cryptocurrency expert (CCE) from the Blockchain Council.
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Aave price plunged to a low of $ 211 on July 20, down 39% from the July 6 high of $ 348. During this decline, AAVE turned the 50-, 100-, and 200-day Simple Moving Average (SMAs) from support to resistance. Tuesday’s red market rebounded with the buyer determined to push the token into areas around the psychological level of $ 350. AAVE remains buoyant for two days in a row AAVE bulls found support at the $ 220 support wall and have propelled Aave price to $ 280 in the past two days. During this rally, the Aave bulls did the 50-day, 100-day and 200-day …