This week started rough for Aave after a short rally last weekend. But it appeared to have found support and now shows signs of strength. It now leads the daily altcoins rally with an insane gain in the last 24 hours.
Initiating drops from a peak of $400 in December, Aave lost more than 50% of its price as it broke through several supports to a three-month low last week. The price recovered, but it was short-lived at $225.
A sudden dump from that price level led to a bearish start this week, and the price closed strongly at $170. Things turned out uglier yesterday due to rising supply, and the price broke down slightly to a low of $167.5. A rejection occurred there, and the crypto bounced back above $200.
That led to a major buy today, and it is now looking strong. The bulls are back in the market but are yet to gain control. A strong weekly close above last month’s high should signal a potential trend shift. For now, the demand level appears low on the daily chart.
Regardless, it is noteworthy to say that the trend is still in a downward slope in the short-term. While the bears have an upper hand, a further crash could position the market in a more bearish condition.
Aave’s Key Levels To Watch
The $225 level currently serves as a barrier for the bulls. If they overcome it, we may see a slight trend shift to the $254.3 and $312.8 resistance.
In case of a drop, there’s a minor level at $190 on the way down before reclaiming the low of $167.5 – marked last month. Dipping through this level could slip the price to $134 in the future.
Key Resistance Levels: $225, $254.3, $312.8
Key Support Levels: $190, $167.5, $134
- Spot Price: $216
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.