The price of $AAVE hovers
Around $286 after a 4% rise.
Its technical indicators show bearish signals.
The cryptocurrency market's increased value rose by 1.43%, bringing it to $3.28 trillion. Major assets in the market lit up green candles, with the fear and greed index stabilizing at 52, reflecting a neutral trend. Bitcoin ($BTC ) is currently trading at around $105.1 thousand, while the largest altcoin, Ethereum ($ETH ), hovers around the $2.5 thousand range.
Among altcoins, AAVE token jumped over 4.76% in the last 24 hours. Notably, the asset broke through its critical resistance level at $279.57 and $290.85, reaching a daily high of around $291.21. In the early hours of trading, the asset was traded at $277.41, recording its lowest price.
At the time of writing this report, AAVE is trading within the range of $286.04, with a market capitalization of $4.33 billion. The daily trading volume dropped by over 1.59%, reaching $783 million. Additionally, the market saw a liquidation of $1.36 million of AAVE during this period.
Will AAVE's downward trend deepen?
Analyzing the price pattern of AAVE over four hours, the market shows negative momentum. The stock price may drop towards the $280.20 range. Continued downward pressure may lead to a death cross, likely indicating a risk of further decline, with the price falling to the $269 threshold.
Conversely, assuming the current market sentiment for AAVE is bullish, the price may find nearby resistance at around $290.37, and any further upward correction may lead to a golden crossover. Upon breaking the next resistance area at $300, a new price increase may begin.
Additionally, AAVE's technical indicators show a bearish crossover with the moving average convergence divergence (MACD) below the signal line, generally indicating weak momentum and the likelihood of a continued downward trend. Furthermore, the Chaikin money flow (CMF) indicator at -0.06 suggests liquidity outflow from the asset, with selling pressure in the market.
Moreover, the daily relative strength index (RSI) of 48.65 indicates a neutral market state, with no strong buying or selling pressure. The AAVE bullish and bearish pressure index (BBP) value of -4.30 indicates strong bearish momentum in the market, and if it persists, it may confirm a strong downward trend.
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