AAVE - 4h. The price has not yet passed the minefield
We do not know what is more frightening for market participants at the moment - the past panic wave of the fall or the very passive recovery of the cryptocurrency market. Indeed, if we look at the charts of most coins, we see that an attempt to start a new wave of growth looks very dubious. Low trading volumes and a strong decline in volatility give the impression that coins will never recover their previous price level.
If we look at the chart of the AAVE coin, we can see that a new wave of growth in the market began on May 29. The main reason is the complete exhaustion of sellers. The rise in the price without volumes to the range of $400-430 begins to hint that at least a local correction awaits the market with the target of $355. At this mark, there is a local upward trend line, which separates the AAVE price from a fall to $300-311. It is in this range that buyers are very interested, starting from February 23:
On the daily timeframe, it is noticeable that this range has already withstood the sellers' attack three times. A powerful wave of the fall on May 19 was able to break through this range, triggering the triggering of a large number of stop orders. However, buyers managed to take control of this range.
We would recommend buying this token either in the range of $300-311, or after fixing above $400-430. The point is that low trading volumes after such impulse movements do not always mean that buyers are weak. We have already witnessed new growth impulses emerging on low volumes and sluggish candlesticks. The problem with this situation is that it is unclear why the volumes are low - either because of the weakness of the sellers and the fear of buyers who are waiting for the moment, or because the sellers are simply waiting for the necessary mark to start a new attack.
Therefore, in such situations, one should not rush to enter a position and wait for an increase in volumes.
Our subjective thought is that the cryptocurrency market has not yet made a sufficient correction after a powerful wave of decline. Of course, continued growth may not look as aggressive as it did before May. However, we expect a local market recovery.
________________________________
We create both short-term ideas (for a local understanding of the market situation) and medium-term forecasts of price movements.
Subscribe to us and get daily concise analytics!
If we look at the chart of the AAVE coin, we can see that a new wave of growth in the market began on May 29. The main reason is the complete exhaustion of sellers. The rise in the price without volumes to the range of $400-430 begins to hint that at least a local correction awaits the market with the target of $355. At this mark, there is a local upward trend line, which separates the AAVE price from a fall to $300-311. It is in this range that buyers are very interested, starting from February 23:
On the daily timeframe, it is noticeable that this range has already withstood the sellers' attack three times. A powerful wave of the fall on May 19 was able to break through this range, triggering the triggering of a large number of stop orders. However, buyers managed to take control of this range.
We would recommend buying this token either in the range of $300-311, or after fixing above $400-430. The point is that low trading volumes after such impulse movements do not always mean that buyers are weak. We have already witnessed new growth impulses emerging on low volumes and sluggish candlesticks. The problem with this situation is that it is unclear why the volumes are low - either because of the weakness of the sellers and the fear of buyers who are waiting for the moment, or because the sellers are simply waiting for the necessary mark to start a new attack.
Therefore, in such situations, one should not rush to enter a position and wait for an increase in volumes.
Our subjective thought is that the cryptocurrency market has not yet made a sufficient correction after a powerful wave of decline. Of course, continued growth may not look as aggressive as it did before May. However, we expect a local market recovery.
________________________________
We create both short-term ideas (for a local understanding of the market situation) and medium-term forecasts of price movements.
Subscribe to us and get daily concise analytics!
🎁 -20% on ALL trading fees OKX
okx.com/join/20PSTRADE
🔥V-I-P cutt.ly/PwkLhT56
👍Daily bitcoin reviews here💲 cutt.ly/3wnaaG4s
🔵Telegram t.me/pstrade_eng
okx.com/join/20PSTRADE
🔥V-I-P cutt.ly/PwkLhT56
👍Daily bitcoin reviews here💲 cutt.ly/3wnaaG4s
🔵Telegram t.me/pstrade_eng
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.