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Aavebitcoin

LENDBTC another bullish reversal pattern formedHey friends hope you are well and welcome to the new update on Aave token. This token has surged more than 2100% since after November 2019. If we place the simple moving averages with the time period of 25,50,100 and 200 and move back to Nov 2019 then you can be easily observed that the smallest time period moving average 25 moved above all then 50 simple moving average was below 25 simple moving average then 100 below 50 and then 200 simple moving average moved below all other SMAs. And a complete opened alligator mouth by the simple moving averages was formed. After that the price action moved up in a parabolic way and so far it has produced more than 2100% rally. Even at this time it can be seen that the open alligator mouth is lifting the price action more up and this time this move of the simple moving averages is wider. Movement in up channel and moon phases: The price action is also moving in an up channel on the daily chart. The priceline of Lend token has touched so many times at the support and several touches at the resistance of this channel. At this time the price line is at the support of this pattern. If we place the moon phases indicator then it can be noticed that new full moon is appeared higher than the previous full moon signaling that the priceline can move up to this level. And if we watch the new dark moon then it is appeared higher than the previous dark moon that is another bullish signal. The synchronized movement with EMAs and indicators: After placing the exponential moving averages with the time period of 10 and 21 it can be also seen that the priceline of Aave token is using these exponential moving averages as good support. And the movement of the price action above these moving averages is very much synchronized with stochastic and MACD indicators. Whenever the price line touches the exponential moving averages and after that the stochastic gives bull cross and the MACD starts turning bullish then price action starts the next rally. At this time the priceline is again at the support of these EMAs. Therefore we should wait for the MACD to turn bullish and stochastic to give bull cross then we can expect the next rally to the upside. Otherwise, the price action of Lend token can break down the support of these exponential moving averages. The Cup and Handle formation: Now if We move to the smaller time period 2 hour chart then it can be easily observed that the price line of Lend token has formed a cup & handle pattern. At this time the price action is retraced at 0.786 Fibonacci and completed the handle of the cup. Now from this level we can expect that the price line can move up to break out the resistance of the handle and the resistance of the cup as well. Conclusion: Even tough on the long-term the price action of Lend token is strong bullish. However we should take care of our stop loss for this purpose we can use the exponential moving averages or the simple moving averages as well. Because once these supports will be broken down then we can also witness a rally to the down side.
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by moon333
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