AAVE and Avalanche (AVAX) Technical Analysis: What to Expect?

Dalmas  |  Jul 12, 2021

AAVE and Avalanche bulls can sustain their respective high valuations. AAVE/USDT has resistance at $300 while AVAX/USDT has support at $10 on the downside.

AAVE

The protocol popularized the concept of flash loans. It remains a borrowing and lending platform, relying on AAVE for governance.

Past Performance of AAVE

AAVE prices are relatively resilient, robust against the wave of sellers.

Reading from the chart, AAVE/USDT found support at the 78.6 percent Fibonacci retracement level of the H1 2021 range.

However, the close above February, March, and April 2021 lows remain hard.

Presently, the price is up 10 percent against the USD.

Day-Ahead and what to Expect

A recovery of DeFi activity and ETH prices could anchor AAVE bulls.

In that case, a close above $300 in follow-through of last week's break above the middle BB will be highly likely.

If not, failure will confirm the retest of May 2021 bear breakout and $300 as resistance.

AAVE/USDT Technical Analysis

AAVE Price Daily Chart for July 12

Traders are upbeat.

Still, the failure of AAVE/USDT bulls to overcome $300 is interpreted to mean weakness.

While AAVE buyers may accumulate, risk-averse traders may wait for a breakout above $300 in a buy trend continuation pattern, targeting $585. There are indications that this is a strong resistance level.

A correction from spot rates would complete the retest. In that case, AAVE prices may, in short to medium term, crater back to $150.

Avalanche (AVAX)

The AVAX utility token is the force behind the DeFi-focused platform.

Past Performance of AVAX

AVAX losses in Q2 2021 were steep. At the time of writing, the token is down over 80 percent from 2021 peaks.

However, gains of late June spilling over to early July 2021 could catalyze more demand for traders aiming for a recovery.

Ideally, gains above June 21 bear candlestick would extinguish bear flickers as tables turn in favor of buyers.

As of writing, AVAX is up four percent versus BTC, ETH, and the USD.

Day-Ahead and what to Expect

Immediate caps are at $14 and $10. Even with gains, bears are predominantly in charge from a volumes perspective.

Nonetheless, a surge past $14 and thus June 21 may see renewed demand, lifting AVAX.

AVAX/USDT Technical Analysis

AVAX Price Daily Chart for July 12

From the daily chart, the close above the middle BB was feeble.

Therefore, this places sellers in contention unless there is a subsequent firm close above $14.

In that case, AVAX/USDT would likely re-price higher towards March and April 2021 lows of $23.

On the flip side, a dump down below $11 and the middle BB yanks AVAX/USDT price action back to selling territory with targets at $10.

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