Aave (AAVE) – Witnessed re-emerging selling activitiesPosted on Thursday, April 14 2022 at 9:21 pm GMT+0000
Decentralized finance protocol Aave (AAVE) failed to capitalize on the previous two positive sessions and pushed back lower amid re-emerging selling activities, to remain locked in a sensitive range between the Ichimoku cloud and directional lines.
The negatively charged Ichimoku lines are confirming the prevailing downward forces, while the oscillators are suggesting that the next move will likely be to the downside. The KST oscillator is losing momentum below its trigger line approaching the zero mark, while the RSI is struggling to overcome the 50-neutral threshold.
So, if sellers keep the lead, the price could dip toward the Ichimoku cloud which is residing near the March 1st inside swing high at 150.98. Failure to hold above this area will see an extension to the lower surface of the cloud, while steeper declines are expected to challenge the 113.38 – 112.50 support belt-shaped by the February 24th and March 7th lows.
On the other hand, if buyers start to push back, initial upside friction could arise from the Ichimoku lines at 188.41 and 204.06 respectively. By conquering these lines, they may target the April 1st high at 261.17. Further higher, they will gain confidence to propel the price towards the December 28th top of 304.34.
To summarize, bearish risks still endure in Aave despite the recent price amplification. Medium-term traders, however, will probably wait for a close below the cloud to raise their exposure in the market.