The Aave price crashed to a $211 low on July 20 shedding 39% from the July 6 high around $348. During this decline AAVE flipped the 50-day, 100-day and 200-day SMAs (Simple Moving Average) from support to resistance. The Tuesday red market rallied buyer who are determined to push the token to areas around the $350 psychological level.
AAVE Remains Buoyant for Two Straight Days
AAVE bulls found support at the $220 support wall, and have pushed the Aave price up to $280 over the last two days. During this rally, Aave bulls have flipped the 50-day, 100-day and 200-day from resistance to support while recording higher highs and higher lows on closure of every trading session on the four-hour chart.
The Moving Average Convergence Divergence adds credence to this bullish narrative by its position above the signal line. Note that the Aave price traction will be sustained if the MACD remains above the zero line in the positive zone.
Moreover, the SuperTrend indicator flashed a sell crypto signal on Wednesday which coincided with the crossing of the MACD line (blue) crossed above the signal line (orange), which is also a sell signal. This saw buyers flood the market to push the Aave price to areas beyond $280.
At the time of writing, AAVE hovers around $281 as buyers seem in control of the market. This is a 33% rise from the July 20 low at $211.
Aave Price Four-Hour Chart
Aave Faces Massive Resistance Upwards
The Aave price four-hour chart show that the bulls have to overcome key resistances to sustain the rally to $350. Note that a candlestick closure above the $290 resistance level will add momentum to the upward traction until AAVE meets a major resistance zone at $310. The rejection of Aave at this level might cause the bulls to retract for support at $290 before testing the $310 resistance level again.
Overcoming this hurdle will see Aave price re-test the July 12 high at $322 and even the July 6 high at $348 before reaching $350.
The In/Out of the Money Around Price (IOMAP) on-chain metrics accentuates the hurdles that the Aave price has to overcome upwards. From the IOMAP model, it is clear that AAVE faces immediate resistance at the $281 and $290 range. At this zone, approximately 2.84 million addresses previously bought 3.3 million AAVE. Beyond this level, AAVE will be among the next cryptocurrency to explode.
On the flip side, AAVE bulls must defend the crucial support area at $274 to make sure that the price does not go lower.
Note that a candle stick closure below this level will invalidate the upward rally as forcing the Aave price to retest support levels at $248 and $225 before dropping to the July 20 low of $211.
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Nancy Lubale
