AAVE is currently showing signs of consolidation, with traders looking for potential breakout levels. This article explores current trends and possible targets.
Price Action and Current Structure
At press time, AAVE was trading around $290, with a slight gain of 1% over the last 24 hours, though it has seen a significant drop of 10% over the past week. Currently, the asset is consolidating just below the mid-range between $320 and $340. An analysis of the weekly chart shows that AAVE is holding above its recent range lows, suggesting the formation of a higher low. A break above mid-range could push AAVE towards the $600 range high.
Bearish Setup on Short-Term Chart
On the daily chart, some analysts have pointed to a possible double top forming, indicating a short-term peak. If this pattern plays out, AAVE could drop towards $230. Support around $278 is being monitored, and if this level breaks, the next zones to watch are near $250 and $244.
Moving Averages and Volume Signal
AAVE is currently trading above the 20-day simple moving average (SMA) at $288 but just below the 50-day SMA at $294, indicating that the short-term trend is undecided. The Balance of Power indicator is at -19.09, indicating that sellers still maintain control, but the diminishing red bars may suggest fading pressure. Traders are watching for a flip back into positive territory, which could confirm a recovery if resistance breaks.
The situation with AAVE continues to evolve as traders closely monitor breakout levels and potential market changes. Current indicators on both short-term and long-term charts signal the need to maintain key levels for trend continuation.
