✴️ Aave Double Bearish DivergenceLet's start with the divergence but there is also the volume signal.
No wait... First, this chart doesn't look like it needs a correction and this is a repeating theme, this and other pairs have room for additional growth before any correction is necessary but when Bitcoin goes down everything drops and this is likely what we are witnessing, the preparation for a sudden retrace.
Even though we are charting a drop and posting bearish we are 100% bullish long-term. These are only short-term moves and the market will recover really strong in 2024 and growth nicely, please be aware.
This is the MACD:
Peaked 9-Nov and the lower high 15-Dec is extreme.
This is the RSI:
Peaked 23-Oct and lower highs in December.
Aave produced a higher high 15-December vs 9-November, so this is a strong double bearish divergence.
The last two peaks, the candlesticks are bearish and yesterday AAVEUSDT closed below EMA10. It is still early but these signals are calling for a drop.
After the drop is over, we can expect additional growth.
This analysis is only invalidated on a rise and close above the last high.
Namaste.
