Detailed analysis of the AAVE asset đ
đ¶ Current situation:
The daily chart of AAVEUSDT shows that the asset has shown a 75% increase (from $85 to $150) since the end of July, demonstrating a strong upward movement. However, the current price at $133.13 (-1.58% on the day) signals a correction after the upward rally.
đ¶ Technical indicators:
Moving Averages: The 7-day moving average is located at $129.10 and is below the current price, indicating a continuation of the uptrend in the short term. The 25-day moving average at $123.29 also confirms the uptrend, serving as support for the price.
Ichimoku indicator: The asset is trading above the Ichimoku cloud, which indicates a strong bullish trend. The upper boundary of the cloud is at $128.45, and the lower boundary is at $119.48. As long as the price stays above these levels, further growth remains a likely scenario.
Bollinger Bands: Bollinger Bands have widened, indicating high volatility. The upper band is at $146.11, while the lower band is at $110.13, indicating potential price action limits in the near future. However, the current price is just below the middle band, indicating the possibility of a short-term consolidation or correction.
SAR (Parabolic SAR): The SAR is at $142.93, which is above the current price, signaling the beginning of a possible correction or reversal in the short term.
đ¶ Resistance and support zones:
The main resistance zones can be seen at $135.24 and $146.11. These levels will be important to confirm further upward movement. A breakout of $146 will open the way to a new upward trend.
Support zones are located at $128.12 and $123.97. If the correction continues, these levels can serve as good entry points for long positions.
đ¶ Body shaping: đ
The chart shows the formation of an ascending wedge, which often indicates further continuation of the bullish trend. A breakout of the upper boundary of the wedge at $135.24 will confirm the continuation of the upward momentum.
đ¶ Prospects for the movement: đ
If the asset manages to hold above $135.24, we can expect a test of resistance levels at $146.11, with the possibility of further growth. However, if the support level at $128.12 is broken, we can expect a deeper correction to the $123.97 zone or even lower.
đ¶ Conclusion: đ
AAVE continues to be in a strong uptrend despite the current correction. Investors should keep an eye on the support zone at $128.12 and the resistance level at $135.24 to make trading decisions. If the resistance levels are broken, the asset may continue its upward movement, and a correction to the support levels may provide an opportunity for new entries into the market.
