One of the largest DeFi protocols, Aave token attracts attention with its performance in the last 15 days.
Aave has been in a steady recovery since it bottomed at an average of $180 on June 26. The altcoin, which showed a significant increase in value from the $180 low level according to the latest price action, is on the verge of a critical resistance level this week.
According to ATH, with $668 in mid-May, the defi coin entered a rapid downtrend with the big crypto crash on May 19, and after losing 75 percent from ATH value, we see that it revised its loss to 50 percent today.
AAVE/USDT Daily Chart
Looking at the daily chart, the AAVE/USDT pair has reached the 89-day exponential moving average resistance at $325 today. Just above this resistance is the 200-day simple moving average ($336).
Closing one day above these average values this week can enable it to enter the band of 350 – 400 dollars. Based on the last ATH value and the bottom level, the Fib 0.382 fibonacci correction, which corresponds to $ 350, appears as the next hard resistance.
In the lower zone, the first important support price is found at an average of $290. This level can be supported by the 8 and 21-day EMAs. In case of a downside break, $230 could act as a second support point, and we could see slides below $200 at lower levels.
In the daily chart, the Stochastic RSI has reached the overbought level. The stochastic RSI, which pointed to a 65% gain on June 27 with bullish momentum, is currently moving sideways in its extreme zone. Failure to exceed $320 in a one-week period is an element that can increase the selling pressure in Aave. In addition, the CMF indicator, which is currently in the positive zone, has also lost momentum.
As a result, Aave appears to be on the verge of a correction, and if buyers fail to defend the $290 support, we could see an average correction of $230 this week.
Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge.