- AAVE Token falls under a descending triangle in the daily chart.
- The coin price struggles near the daily 200 EMA with the bearish crossover of 50 and 100 EMA.
- The AAVE/USD trades at 0.007996 with an intraday gain of 1.16%.
AAVE Token price seems to move down within a descending triangle after facing rejection from the $475. However, the level of $275 has managed to halt any further downfall and has pushed the price back thrice.
The trading volume is declining while under 20 MA projecting the silence before the thunderstorm. The fallout of the pattern could lead to the further downfall of 30% or more. However, in case of a bullish outcome, Investors could expect a 40% to 60% rise from the current market price.
The coin price trades just below the 200 EMA with a bearish crossover of 50 and 100 EMA in action in the daily technical chart. The sloping 50 EMA forecasts a death cross shortly if the pattern falls out.
Presently, the token price is trading at $324.73, with an intraday growth of 14.56% in the market cap. Moreover, the intraday trading volume of the coin has managed to rise 53% in the past 24 hours.
Short Term Downtrend Breakout in AAVE Token In 4-hour Chart
In the 4 hours technical chart, the AAVE token breaks out of a short-term downtrend with a boom in buying volume. The coin price is yet to retest the trendline confirming the successful start of another uptrend.
The coin price is trading below all the critical EMAs- (50,100,200) in the 4-hour chart. All the EMAs are sloping down with a clear indication of the downtrend that was in action. The price struggles near the 50 EMA and is yet to rise above it. The breach of significant EMAs will confirm the strength of the uptrend.
Conclusion: The descending triangle of the daily chart is due to any decisive moves whereas, the breakout of downtrend in the shorter time frame forecasts a hope for another bull run. Investors should hold and patiently wait for the price to breach the 5 EMA, or an even safer option would be to wait for the fruition of the descending triangle pattern.
Support– $275 and $150
Resistance– $521