Aave Price Forecast: AAVE technicals turn bullish, but buyers face one major obstacle
|- The parabolic SAR in the 4-hour Aave chart has turned bullish.
- Since late October, a bullish divergence has been forming between AAVE and the RSI within the 4-hour time frame.
Aave fell from $41.65 to $27.75 between October 23 to November 4. Since then, the bulls have pushed the price up to $31. The price is flashing several buy signals that could see the price go up to $50.
Aave technicals bullish
The recent bullish impulse that AAVE went through saw the SAR points turn bullish on the 4hr chart. The parabolic SAR is a useful tool that helps us judge the current trend of the market. It looks like Aave’s market trend has reversed from bearish to bullish in this time frame.
AAVE/USDT 4-hour chart
Since late October, a bullish divergence has been forming between Aave’s price and the RSI within the 4-hour time frame. Bullish divergences usually occur when an asset's price makes a series of lower lows while the RSI is making higher lows. It’s another useful metric that shows that the price’s downtrend is approaching exhaustion.
AAVE/USDT 4-hour chart
Adding further credence to the bullish outlook is the moving average convergence/divergence (MACD). This tool helps us determine the current market momentum and sentiment. The MACD for the AAVE/USDT 4-hour chart shows increasing bullish market momentum.
AAVE/USDT 4-hour chart
IntoTheBlock’s Global In/Out of the Money (GIOM) helps us visualize strong support and resistance levels. The buyers are currently facing a strong resistance barrier at $32, wherein 427 addresses had previously purchased 3.16 million AAVE. If they manage to break past this obstacle, the next viable resistance they face is at $42. Breaking past this should take the DeFi protocol up to $50.
Aave GIOM
Note that this bullish outlook holds only if the buyers manage to hold the price up. The GIOM shows a lack of healthy support walls on the downside. As such, the sellers may manage to take the price down to $25 and spoil the bulls’ party.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.