- AAVE’s indicators revealed a slowdown in buying pressure over the past ten days
- A drop below $260 will be an early warning sign of a deeper dip towards the range lows
An AAVE whale bought $15M of the altcoin after its dip to the $239-mark. This dip was seen as a buying opportunity, with AAVE rallying by 10% soon after. This, before the crypto retraced again at press time.
Rising capital inflows seemed to support the bullish bias at press time though.
AAVE’s bullish trend stalls at the $280-mark
Source: AAVE/USDT on TradingView
On the 1-day chart, AAVE has had a bullish market structure since 08 May. The structure break was highlighted in green and since then, the altcoin has made higher highs and higher lows.
That uptrend has not changed, but over the past two weeks, the price set equal highs and equal lows. This short-term range formation may be worth a closer examination. On the D1 timeframe, the A/D indicator did not seem to reverse its trend either.
This could be a sign of steady buying pressure behind the token, although this demand slowed down over the past ten days. The CMF also reflected a similar finding. It was still at +0.06 at press time, showing significant capital inflows. And yet, it dropped to this value from +0.23 on 25 May.
Meanwhile, the RSI also underlined bullish momentum. A crossover below the neutral 50 line could be a warning of a trend reversal.
Source: AAVE/USDT on TradingView
The 4-hour chart highlighted a range formation (white) in play over the past two weeks. This range extended from $240 to $280, with the mid-range level at $260. At press time, the price had fallen below below the mid-range level.
Finally, the A/D indicator and the CMF showed steady buying pressure. The RSI was at 49.3, underlining that bearish momentum had begun to gain strength.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
