AAVEUSD Testing the 1D MA50. Potential Buy Signal.

Aave (AAVEUSD) has been trading within a Channel Down pattern since the October 29 2021 High. Right now the price is approaching the 1D MA50 (blue trend-line) after the June 18 Lower Low. It has been trading below the 1D MA50 since April 28 and the last time it broke after a Lower Low was on March 17.

That was a break-out buy signal and the structure seems very similar with the current one. Notice how that break-out buy signal coincided with the RSI breaking above its Symmetrical Resistance. As a result we are waiting for a clear break on both in order to engage with a buy position. The clear target is the 1D MA200 (orange trend-line), which was hit both on the March 2022 and the December 2021 Lower Highs but we can extend that to just below the 0.786 Fibonacci retracement level, which was almost reached during both these Highs. Best though would be to pursue this higher target if the 0.5 Fib breaks.



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