Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Bitcoin rose from $37.7k to $48k in mid-March and Aave rose next to the $115 lows to $250. At the time of writing, it had retreated to $190. However, despite the bearish momentum of recent hours, the price has yet to becoming a bullish bias.
AAVE formed a falling wedge (white) for the past few months in December and broke this pattern in mid-March. The breakout coincided with Bitcoin’s rally to $48k, and AAVE drove the wave to offer resistance at $253.
In recent days, BTC’s rejection at $48k was around the same time as AAVE’s push towards $250, and both coins were subsequently pulled back. AAVE also fell below the USD 205 level, trading at USD 192 at the time of writing, which was the recent lower high from the previous downtrend.
The descending trendline (blue) can also be tested again, in case Bitcoin and the rest of the market see some sales.
The $250 pullback came on the background of a bearish divergence between the price and momentum, indicated in white. The RSI dropped to 51.75, just above the neutral 50. Combined with the fact that the previous lower high at $192 has not finally broken, there was some evidence to show that a bullish bias for AAVE persists.
Similarly, the AO also recently exhibited strong bullish momentum and pulled back, but was still above the zero line to show the overall presence of upward momentum.
The OBV broke above a level it had last been in mid-January and retreated. However, the massive rise in the OBV in March is a strong sign of the demand behind the currency’s rally.
The market structure for AAVE remains optimistic over the longer term, as does the momentum. There has been strong demand for the past month and this could push prices above $200 again. A move above USD 205 would signal another sign of bullishness, and USD 250 and USD 300 would be resistance levels to watch out for.
This post Aave Is Turned Down For $205 But Here’s Why All Hope Is Not Lost Yet
was published first on https://ambcrypto.com/aave-gets-rejected-at-205-but-heres-why-all-hope-isnt-lost-yet/