AAVE (AAVE) – Remains locked inside the regression channelPosted on Tuesday, July 5 2022 at 9:56 pm GMT+0000
AAVE (AAVE) recent recovery from a near 20-month low of 46.9 has snagged in the vicinity of the 20-day exponential moving average and the price is still locked inside the regression channel stretched from the 1st of April top.
The momentum indicators are conveying that bearish forces are persistent. Specifically, the IMI has plunged below its equilibrium line, and the RSI keeps hovering in the bearish waters, and lately reclaimed a negative slope. Furthermore, the 20- and 55-day exponential moving averages are maintaining a sturdy bearish bearing, sponsoring the current negative picture.
Hence, sellers’ eyes are currently turned towards the 18th of June low at 46.9. By cracking down that floor, they will initially target the Fibonacci golden number of the 46.9 – 77.6 up-leg at 28.0. Next, they will pursue the 227.2% Fibonacci level at 7.9.
On the flip side, even if buyers manage to push back and overrun the regression channel upper-line, overlapping with the 20-day exponential moving average, they won’t be out of the woods, as the 77.6 – 84.9 zone linking the 21st of June high and the 55-day exponential moving average, could negate positive developments from gaining further ground. However, if buyers are triumphant, the price may then jump for the 31st of May at 124.0.
Overall, AAVE is exhibiting a broader bearish bias inside the regression channel. A dip in the price past the 46.9 level will strengthen selling pressures. That said, buyers’ confidence is likely to improve should they manage to steer the price outside the channel, but for optimism to return to the coin, the price will need to pilot above the 77.7 high.