Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The higher time frame market structure was bullish. The return to the demand zone around $70 is likely to cause the bulls to start another rally.
AAVE rose from $66.45 on July 1 to $88 on July 14. This represented a gain of 32.4%, but since then the token has seen a substantial retracement. This caused prices to fall below $75, but the bulls may take another step higher.
Read Aave’s [AAVE] Price Forecast 2023-24
The presence of a bullish order block above the $68.4 support level represented a zone that should be filled with buyers. However, during a re-inspection in recent days, the AAVE bulls have not yet made their mark.
The chances of another AAVE rally are good
Source: AAVE/USDT on TradingView
On the 1-day chart, the $60 and $68 levels have been important since mid-April. Over the past six weeks, the AAVE bulls have managed to flip both levels to support once again. The OBV has also climbed higher and is maintaining its month-long uptrend.
The RSI showed strong bullish momentum earlier this month, but has fallen back to the neutral 50 in recent days. This suggested that momentum had begun to fade, but had not yet shifted bearish on the daily chart.
The price action showed that the bulls were dominant. AAVE’s market structure has been bullish and the recent higher low at $68.7 should be broken before the structure turns bearish. The bullish order block (cyan) that initiated the jump to the $88 level started from this zone, meaning the retest could yield a strong positive reaction.
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The declining average coin age meant buyers did not accumulate despite the price increase
Source: Sentiment
Since June 9, the average coin age of 90 days has dropped like a brick. This showed that the token holders were selling and not collecting AAVE. This argument is not supported by the price action of the past six weeks. The MVRV ratio showed that there has been a wave of profit taking over the past week.
This was accompanied by a huge spike in dormant circulation, indicating that a major sell-off was taking place. If AAVE can defend the $70 support zone in the coming days, another move higher would become more likely.
This post Is $88 the next target for Aave bulls
was published first on https://ambcrypto.com/is-88-the-next-target-for-aave-bulls/
