Will the bottom of the range hold as support for AAVE/USD?
Altcoins haven’t exactly been faring well these days, but I’m seeing a potential bounce on this chart and some positive developments to boot!
AAVE/USD: 4-hour
AAVE/USD 4-hour Chart
This one has been pacing back and forth inside its short-term range with support at $71 and resistance around $80.50.
Price is testing the floor at the moment and might be due for another bounce to the top.
What are technical indicators saying?
The 100 SMA is still below the 200 SMA, which means that the path of least resistance is to the downside. In other words, the bottom of the range is more likely to break than to hold.If that happens, AAVE/USD could tumble by the same height as the rectangle, possibly making it the way down to $61.50.
Also note that the altcoin is trading below both moving averages, so these could hold as dynamic resistance levels even if price pops higher.
Then again, Stochastic is already dipping into the oversold region to signal exhaustion among sellers. Heading back up would confirm that bulls are regaining the upper hand.
I’m also seeing a bullish divergence, as AAVE/USD made lower lows while the oscillator had slightly higher lows.
Earlier this week, the Aave DAO passed a vote to deploy the protocol’s latest iteration on the Ethereum blockchain. This “clean” deployment would consume less resources while also setting up a growth strategy for its fully collateralized stable token GHO.
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