Aave (AAVE) – Bears looking to strengthen the negative tendenciesPosted on Tuesday, June 14 2022 at 9:26 pm GMT+0000
Aave (AAVE) has changed course in June, reacting at the 124.00 hurdle, dropping sharply below the Ichimoku plots in the last couple of sessions, and the odds for a continuation of the downtrend are currently very elevated.
The negatively charged Ichimoku lines are confirming the prevailing downward forces, something that is also mirrored by the oscillators. The Awesome Oscillator is dipping back into the negative territory while the KST turned lower again and nudged below its signal line after deflecting off its zero level, both promoting additional downward price action.
As things stand, traders should wait for a firm close below the 61.42 level marked by the 12th of May bottom. In such a case, the descent would see an extension to the November 26th of 2020 low of 46.00, while steeper declines are expected to challenge the 161.8% Fibonacci extension of the May up-leg at 22.76.
On the other hand, if buyers start to push back, immediate upside friction could arise again from the 27th of May low fortified by the Tenkan-sen and Kijun-sen line around 82.00 – 89.00. If positive pressures strengthen further, the Ichimoku cloud may try to delay any price advances towards the May 30th high of 124.00.
In a nutshell, Aave has been consistently navigating south for almost 10 months revealing a sturdy bearish outlook, and a decisive drop below 61.42 will further strengthen the negative tendencies.