Hello everyone,
AAVE is at an interesting level at the moment. We have seen a 40% rise in price in the past 4 days. So what's next? AAVE reclaimed the $282 support level and reclaimed the 200MA (which is sitting at $282 as well). However, AAVE is still in it's bearish pennant it's has been forming since the late may crash. The rise in price over the past 4 days also brought the Stochastic RSI to very high levels.
This means holding the $282 support will give us a breakout of the bearish pennant, opening up the road to the $340 resistance and then the $411 resistance. Losing the $282 support however, would likely mean a drop to the $240-$245 range, maybe even to the bottom of the pennant around $230.
Where we will head will depend on Bitcoin. If BTC trades bullish in the next couple of days AAVE will probably breakout. If BTC drops, AAVE will drop with it. The biggest concern is the CME gap for BTC right now. CME futures closed at 32,200 on the 23rd so I am concerned BTC will drop come monday morning.
AAVE is at an interesting level at the moment. We have seen a 40% rise in price in the past 4 days. So what's next? AAVE reclaimed the $282 support level and reclaimed the 200MA (which is sitting at $282 as well). However, AAVE is still in it's bearish pennant it's has been forming since the late may crash. The rise in price over the past 4 days also brought the Stochastic RSI to very high levels.
This means holding the $282 support will give us a breakout of the bearish pennant, opening up the road to the $340 resistance and then the $411 resistance. Losing the $282 support however, would likely mean a drop to the $240-$245 range, maybe even to the bottom of the pennant around $230.
Where we will head will depend on Bitcoin. If BTC trades bullish in the next couple of days AAVE will probably breakout. If BTC drops, AAVE will drop with it. The biggest concern is the CME gap for BTC right now. CME futures closed at 32,200 on the 23rd so I am concerned BTC will drop come monday morning.