Aave has faced resistance at $316, leading to a correction and bringing the price closer to a key support zone at $227.
Rejection at $316 Resistance
After failing to break through $316, Aave began a corrective move, bringing price action down to the point of control. This level serves as a crucial short-term gauge of strength. If AAVE fails to hold this zone, the next major support lies at $227.
Importance of $227 Support Zone
The $227 region carries significant technical importance. It is not only a historical higher low, but also aligns with the 0.618 Fibonacci retracement level and a bullish order block based on previous candle structures. This combination of support levels forms a high-confluence zone where price could form a bottoming pattern and resume upward movement.
Expectations for Future Price Action
Aave's price is likely heading toward the $227 support zone after losing the point of control. If this level holds, a bullish reversal is likely, targeting $316 and potentially $390. However, failure to hold $227 would compromise the structure and open the door to deeper downside.
The current pullback of Aave is considered healthy, and the support at $227 is crucial for the continuation of the bullish market trend.
