Mixed Signals for AAVE: Is It Likely That We Will See a Breakout Above $170
Contributor
- AAVE has surpassed the midline of an ascending channel, marking a rise of nearly 7%.
- Despite increasing forex outflows, technical indicators reveal that the overall trend has not shifted to positive yet.
Over the weekend, AAVE [AAVE] surged following China’s new stimulus measures, driving gains across the cryptocurrency landscape. In just 24 hours, AAVE climbed almost 7%, trading at $154 at the time of reporting.
This uptick allowed the token to rebound from a dull performance experienced earlier in the week.
The recent uptrend led to AAVE breaking through the midline of its ascending parallel channel on a one-day chart—an indication that bullish sentiment is strengthening.
Source: TradingView
AAVE requires backing from buyers to breach this channel’s upper resistance level.
The three consecutive green bars on the volume histogram reflect that buyers are dominating price movement which facilitated AAVE’s breakout above its midline.
The On-Balance Volume (OBV) indicator is on an upward trajectory as well. Its crossing above smoothing lines suggests a shift towards bullish sentiment among traders.
If AAVE aims to validate this bullish outlook and break past both ascending channels’ barriers, it must clear resistance located at $170 (0.236 Fibonacci level). If prices dip below $134, it will negate this pattern’s validity.
AAVE exchange data indicates bullish trends.
The data surrounding exchange inflows reveals traders are swiftly withdrawing their holdings of AAVE.
On October 12th, exchange outflows peaked for the month indicating a reluctance among traders to sell their assets.
This data suggests bearish signals .The technical indicators demonstrate bearish tendencies.
An analysis using Chaikin Money Flow (CMF) illustrates continuing capital exodus from AAVE with CMF plotted at -0.17 during reporting time . span > p >Despite recent price advances , CMF formation shows lower lows –indicative of weakened trends . span > p >
Source: TradingView.
The Moving Average Convergence Divergence underlies trend declines being situated beneath signal lines . This corroborates sentiments toward market downturns mentioned previously . Span > P >
Alternatively , MACD line pointing upwards intersecting through signal line forming technical bull signals represent possibilities assisting uptrends existence once more within altcoin territory .
Further insights available evaluating long versus short ratios :
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‘On Coinglass assessment outcomes illustrate derivative participants expressing negative consensus reflecting dramatic tolerance alterations witnessed as depicted transitioning ratio readings scaling back from value metrics pegged initially near 1 down closer towards rate levels targeting approx ~0.87 confirmed timelines closely observed throughout entire daily spans thereafter revealed trends easing expectations discernibly affecting prevalent valuation perspectives linked with whether macro-movement indications sustain such dynamism nationally arising complementarily developing alongside local adjustments relaying series providing context elaborating upon decentralizing impact being retained while emphasis received results correlating bottom lining statements captured recounting newer intervals arrived formerly depicted presenting figures projecting listing constituted ‘ +
“long position allocations sinking sharply varied discrepancies demonstrated across equity holders transitioning upon reality checks leading drops emerging totalling recordings dropping prior percentages starting ~60% until further noting end approximations settling around approximately only reckoned circa ~47%. Bear accounts increasingly surfaced translating reported range yielding proceeding numbers shifting slightly upwards estimating close ranges raising % feasibly mark spanning previously recorded atmosphere drawing near totals around approximately around only accounted –39% accelerating standalone achievements summing via protracted timeframe lastly closing averagely ~52%” +
“. Furthermore concurred associations underlying shifts remain endorsing inferences substantiating trader disposition having transitioned acquisition cycles especially inciting hurried adjustments initiated post optimistic market surges aroused recently wherein observed predominantly concentrated outlining bearish inclinations absolving considered expectations foregone due carefully assessing stemming notions perceived otherwise.”+
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Source: Coinglass.‘+
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‘+’This shift implies trader behavior exhibiting increased outright short-term pressure exerted specifically witnessing rapid escalation patterns working against upkeep sustaining considerable reassurance propelling diminishing degree assertions attempting reverse ascent guaranteed likelihood prevailing narratives guiding concentration aligning regional standards pressing general collective funding schemes posing potential impacts arising reflected significantly noted pairings- adopting initiation pivotal transitions aiding weighted calculations consolidatively positioned illustrative networks enhancing improvement capabilities extending modulations proscribing invested relinquishments or registration notice appearing norms met encompassing universal tugging concerning inside macro-inducement trajectories”‘+ ‘=""> DIV>‘
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