Following the recent daily price actions from where the market picked up at $70, Aave has recovered well and is now footing another major buy to continue its higher high and higher low pattern on the daily chart.
This buy was triggered by a strong rebound from the $135 support level yesterday after initiating a short retracement last week. The price looks strong today with a surge toward $163 – where it broke down this week.
Flipping through this minor level to the September high could activate a quick rally to $200 and above in the future. Failure to flip this level could result in another drop capable of plunging the asset back to $100 with a head-and-shoulder formation before footing a fresh increase.
In fact, the steady decrease in the daily volume indicator is something to worry about. If that volume histogram continues to fall, we can expect broader retracement. But as it stands now, the bulls are in control from a short-term perspective. Bigger moves lie ahead!
Aave’s Key Levels To Watch
Source: Tradingview
Now that the minor $163 resistance is considered as an obstacle level, a flip through it should bring a full recovery at last month’s $181 high. The next stop for the bulls would be $199 – April 2022 high – and $220.
So far, the $135 level has provided support. If this key level collapses, subsequent supports to watch for a broad retracement are $118 and $97.
Key Resistance Levels: $163, $181, $199
Key Support Levels: $135, $118, $97
Spot Price: $148
Trend: Bullish
Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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