AAVE/USDT (4h timeframe) presents a significant price action setup. Let’s break down the important elements:
🔻 Trendline Break
• The chart highlights that AAVE has broken the upward trendline. This is a major bearish signal as it indicates that the bullish momentum that was previously supporting price growth has now failed.
• Such a break often leads to accelerated selling pressure, and the price could now seek lower support levels.
🏁 Key Support Level at $120
• After breaking the trendline, the price might target the $120 support level, as indicated by the label on the chart.
• This support level is significant because it represents a historical area where buyers have stepped in previously. If this level holds, we may see a price reversal or consolidation.
📊 Resistance Levels
• The resistance levels indicated at $180.74 and $167.96 represent key areas where the price might struggle to rise above if a recovery were to occur.
• The nearest resistance is around $154.59, which could serve as a short-term price ceiling before any further bearish move or recovery attempt.
🔮 Outlook
• The overall outlook is bearish due to the trendline break, but the $120 support level will be crucial to watch.
• If the price declines and holds at $120, there may be a potential bounce. However, a break below this support could lead to further downside.
⚠️ Conclusion:
• Bearish bias with the potential to drop towards $120 support level.
• Watch for potential bounce signals near the $120 area, but for now, further downside pressure is expected.
⚠️ Disclaimer:
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