Aave managed to break above its crucial resistance of $104 in the last 24 hours. As the market showed strength, altcoins across the industry attempted to move north. Bitcoin broke above the $30,000 price level and this extended gains across the entire altcoin market.
At the time of writing, Aave was still quite close to the $104 price level, which is now acting as support. The bulls need to amplify for the bearish thesis to be invalidated. Over the past week, Aave gained around 10% on its chart. A current drop in price will push the coin below the $103 support line.
At the moment, the coin has been facing strong resistance at the $108 price level. For the coin to trade in bullish price action, it is important for Aave to trade above the $108 resistance level. If the coin fails to move above the aforementioned level, Aave could extend further losses.
Aave Price Analysis: One-Day Chart
The altcoin was trading at $105 at the time of writing after breaking above the $104 resistance level. The overall resistance for the coin was at $108. A break below the current price level can push the coin to the $93 mark. The other major resistance mark was at $120.
Aave last traded around this price level in the month of January 2021. However, during the last week, the buyers tried to return to the market. The same reading was reflected in the volume bars. The volume traded in the last session was in the green. This indicated bullish price action at press time.
Over the past week, as Aave continued to show strength, buying strength slowly increased on the chart. The relative strength index reflected the same. At press time, the indicator was mid-line, this reading meant that there were equal numbers of buyers and sellers in the market.
However, Aave price was parked above the 20-SMA line, indicating that the price action was more inclined to favor the buyers. Buyers were responsible for driving the price momentum in the market.
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The coin has so far shown mixed signals on the one-day chart. Although most indicators leaned towards optimism, some were still not reflecting the same price action. Chaikin’s money flow recorded a drop, this meant a drop in capital inflows over outflows.
On the other hand, the moving average convergence/divergence experienced a bullish crossover when the price of the coin started looking bullish. The green histograms on the MACD were also indicative of the buy signal. If buyers act on it, Aave may even try to bargain near the $120 price mark; however, support from a broader market will be required.
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