Aave continues to exhibit a bullish market structure despite a correction from the recent high. Currently, the price approaches a potential zone for a new higher low formation.
Overall Market Structure of Aave
Despite the recent pullback, the Aave market retains its bullish structure. Corrections are common in such trends and often occur as 'bullish selling', allowing the market to reset the balance between buyers and sellers.
Key Technical Levels
The current price is near the point of control, acting as short-term resistance. The $159 support level is critical as it encompasses the value area low and a high timeframe support level.
Price Movement Expectations
It is important to closely monitor the $159 support zone. If a higher low forms here with increased volume, Aave could resume its bullish trend and retest the highs at $316.
Failure to hold the $159 support level could lead to a deeper price retracement, affecting Aave's short-term outlook. Thus, it is crucial to watch for price reactions in this zone.
