Aave (AAVE) investors have failed to consolidate recent gains, with the price facing rejection at the $86.5 resistance level, leading to a sharp price retracement. After falling by 13%, AAVE moved to recent support at $77. However, as of the time of writing, investors have managed to hold support on the 12-hour timeframe and are actively looking for a rebound. Meanwhile, BTC has consolidated recent gains in the $34,000 price area, with buyers looking to break through the next hurdle, which is $35,000. #Aave
AAVE maintains bullish sentiment despite sharp pullback
Despite the pullback, AAVE is still showing bullish signs in the short term. While the RSI has moved out of the overbought zone, it remains above the neutral 50 level, indicating that there is still strong buying pressure, which is confirmed on the longer time frames.
Furthermore, fund inflows remained positive with a CMF reading of +0.15.
Taking into account the price action and chart indicators, investors can expect a quick price rebound with expected profit targets between $83 and $85. On the other hand, if the bullish support at $77 falters, sellers may look for opportunities further downside with targets between $70 and $72.
Futures market signals are varied and sometimes inconsistent
The funding rate remains positive, indicating that more speculators are willing to buy AAVE, showing good demand for the asset. This is based on data from Coinalyze. However, OI continues to decline, indicating uncertainty in the current price rebound. At the same time, spot CVD fell, also showing fluctuations in demand.
Therefore, traders are advised to wait for a bullish candle on the longer time frames to close above the support level of $77 before considering setting up a move.
