AAVE has been outperforming several top altcoins in the market, showing significant momentum in the current bullish trend. Its 24-hour trading volume has increased by almost 12% to reach $180 million after a recent drop, as highlighted in a different CryptoCrypto report.
Interestingly, the altcoin’s price is currently at $150, with the RSI indicating oversold conditions. This presents an opportunity for traders to see it as a potential “buy the dip” moment, especially with the bullish MACD crossover signaling a potential uptrend.
Considering the recent failed attempts to break the critical resistance level at $200, investors are eager to know if AAVE can make a successful move this time.
Positive Technical Indicators for AAVE
AAVE’s current price of $150 sets the stage for a potential surge to $200, supported by several favorable technical indicators.
However, the current market cycle differs from the past. While AAVE experienced a strong bullish run in March when BTC reached its all-time high, the recent price action has seen consolidation and multiple unsuccessful attempts to surpass the $150 mark since late September.
Given the increased market volatility amid looming elections, Bitcoin is likely to attract more attention, potentially diverting liquidity from smaller-cap altcoins like AAVE.
Moreover, a notable rise in short positions in the derivatives market reflects the cautious sentiment prevailing under the current circumstances.
If the current market conditions persist, AAVE might witness a downtrend towards $140, offering an attractive entry point for new investors despite the optimistic technical signals.
Anticipating Short-Term Growth for AAVE
Recent data shows that over 20,000 AAVE tokens have been withdrawn from exchanges in the last two days, indicating a temporary positive sentiment towards the altcoin. However, this enthusiasm diminished quickly as investors started selling off their holdings.
The rationale is simple – the market volatility. Until stability returns, investors are likely to seek refuge in Bitcoin, as well as traditional safe-haven assets like gold, silver, and bonds.
While the current price of AAVE may appear appealing for accumulation, the uncertainty surrounding a potential bullish rally remains. Short-term gains are more probable, keeping AAVE around $150, particularly if Bitcoin continues its upward trajectory.
Nonetheless, a pullback to $140 is a plausible scenario. Until the election uncertainty diminishes, significant players might struggle to break AAVE out of its consolidation phase, despite targeting the potential buying opportunity.