AAVE – Exhibiting a strong bearish biasPosted on Sunday, March 13 2022 at 8:03 pm GMT+0000
AAVE maintains its firm downward trend, reaching levels last seen back in January 2021 as negative momentum persists. Moreover, the price continues to record successive lower tops and lower bottoms beneath its 20 and 55-day exponential moving averages, reflecting the overall bearish outlook.
Technical indicators are also endorsing the current bearish trend in motion. The MACD is below zero and flirting with its signal line. The ADX is strengthening above 20, confirming the current trend strength and the DI- and DI+ lines are negatively aligned suggesting additional bearish price actions.
If that’s the case, a firm break below the 111 will implement a stronger down movement where the price will meet the Fibonacci golden number at 87. Crossing below this point will open the door towards the 227.2% Fibonacci extension at 61.
On the flip side, if buyers resurface, and surpass the latest top of 151 fortified by its 55-day exponential moving average, they will march towards the 8th of February high at 192, a break of which could give the green light for a continuation towards the 16th of January hurdle of 245.
Summarizing, AAVE is exhibiting a strong bearish bias below the exponential moving averages and a dip below 111 will further feed negative tendencies. That said, for the current bearish trajectory to dissolve, the price needs to overstep the 151 high.