Aave (AAVE) – Under bearish control despite the recent price stabilizationPosted on Wednesday, September 28 2022 at 8:46 pm GMT+0000
Aave (AAVE) continues its 7-day sideways navigation within the falling regression channel stretched from the August 12th peak, marginally beneath the August 29th bottom.
However, the horizontal move could be nothing more than a temporary pause in the last sell-off, as it came in the aftermath of the confirmation of a bearish trend reversal pattern, which is sponsored by the downwards sloping 20- and 55-day simple moving averages. Moreover, the technical indicators keep sending discouraging signals. The ROC is edging lower in the negative region and the -DI and the +DI lines of the ADX indicator are bearishly aligned and diverging, with the indicator itself skyrocketing above 20.
Hence, whenever sellers start to push back and clear the middle line of the regression channel, they will initially visit the 161.8% Fibonacci extension level of the late August to mid-September up-leg at 66.74. By retaining control below the latter, they could then seek out the channel’s lower line ahead of the 48.06 – 45.61 area linking the 261.8% Fibonacci level and the June 18th bottom respectively.
Alternatively, if the decentralized lending protocol manages to jump above the 78.28 level and the neighboring 20-day simple moving average, it will initially fight with the upper bar of the channel before tackling the 55-day exponential moving average at 88.70. Snapping that obstacle may see another challenging battle around the September 12th peak of 96.96.
All in all, AAVE is still under bearish control despite the recent price stabilization, with the traders’ attention remaining currently locked at 66.74