AAVE is a finance blockchain network that allows its users to lend and borrow cryptocurrencies. Their customers can earn interest on the crypto deposits into a liquidity pool. To take out a loan, borrowers can use their crypto as collateral. Let us look at the technical analysis of AAVE.
<h2><strong>Past Performance
</strong></h2>
On September 21, 2021, AAVE opened at $291.88. On Sep 27, 2021, AAVE closed at $274.03. Thus, <a href="https://www.cryptoknowmics.com/news/aave-technical-analysis-sellers-convulsions-before-the-price-growth/">in the past week</a>, the AAVE price has decreased by approximately 5.84%. Whereas in the last 24 hours, AAVE has traded between $270.43-$303.76. Indicating high volatility in the market.

<img class="tv-snapshot-image" src="https://s3.tradingview.com/snapshots/n/NYADTHi1.png" alt="TradingView Chart" />

<a href="https://www.tradingview.com/x/NYADTHi1/">https://www.tradingview.com/x/NYADTHi1/</a>
<h2><strong>AAVE Technical Analysis
</strong></h2>
The AAVE price is currently taking support from the demand zone. It is forming a support near the $265-$270 zone. We can expect the price to bounce after forming support in this range. After the Ethereum rally, we can expect Defi tokens to rise and break the resistances. The immediate resistance level of AAVE is at $308. Let us look at the reasoning:

Currently, AAVE is trading at $274.11. The price has decreased by approximately 9% from the day’s opening price. Thus, the market seems bearish for the rest of the day. However, AAVE is in a narrow range, this price drop could retest the level of $308, and a breakout from that level will bring it in a bullish stance. We have to wait and watch for any price action.

On the daily chart, the <strong>MACD and signal lines</strong> are in the negative zone. Thus, giving a sell signal. Moreover, we can witness a bearish crossover by the Signal line over the MACD line. Thus, the overall market momentum looks bearish. Hence, the price may decline further.

Currently, the <strong>RSI indicator</strong> is at 38%. It has fallen from the 59% mark, thus making a bearish divergence. Thus, we can see that selling pressure is increasing. Therefore, we have to wait and watch if buying pressures become strong enough to bring about a bearish trend reversal.

In short, when we look at all oscillators, we can say that the price may continue to fall. However, we cannot rule out the possibility of a trend reversal.
<h2><strong>Day-Ahead and Tomorrow </strong></h2>
Currently, the AAVE price is below the <strong>Fibonacci pivot point</strong> of $348.12. If the bears remain strong till day end, then the price is likely to fall below the first, and second, support levels of $261.8, and $215.5, respectively.

However, if the price rises and breaks the resistance level of $348. It will highlight the next resistance level at $426, and traders can take a long position accordingly.

AAVE Technical Analysis: Price Below the Fibonacci Pivot Point of $348.12, Support Near $265-$270 Zone

If the bears in AAVE remain strong till day end, then the price is likely to fall below the first, and second, support levels of $261.8, and $215.5 respectively.However, if the price rises and breaks the resistance level of $348. It will highlight the next resistance level at $426 and traders can take a long position accordingly.

Ankita is reading geek by birth, she loves to read and write about finance and now cryptocurrencies and blockchain since 2017. A Bitcoin enthusiast ever since, she likes to understand businesses and how they affect everything else. Ankita contributes on our news bulletin with the latest happening in blockchain, crypto and ICO market specifically.

AAVE Technical Analysis: Price Below the Fibonacci Pivot Point of $348.12, Support Near $265-$270 Zone

Top Picks