AAVE struggles at key resistance, facing bearish pressure; a drop to $290 support is possible if it fails to break $400.
Bulls must push above $400 soon, or AAVE risks a deeper correction with potential support at $265 and $220 levels.
AAVE's consolidation phase hints at indecision; watching key support levels could offer buying opportunities if it holds above $290.
AAVE's price action signals a critical phase as it hovers around $337.26, struggling to gain traction. The 4-hour chart shows rejection near the $357.83 and $419.01 resistance zones. Besides, bearish candlestick formations and a 1% price drop suggest selling pressure. Bulls must push above $400 soon, or bears could seize control, targeting support levels.
https://twitter.com/CryptoJobs3/status/1872302806851334328 Resistance Rejection and Potential Support Levels
Recent price movements failed to breach resistance zones despite bullish attempts. This resulted in sharp retracements, indicating heightened caution among traders. The current descending trend highlights $290, $265, $240, and $220 as potential support levels. Additionally, a lower daily uptrend and visible supports between $225.87 and $246.84 suggest crucial price stabilization zones.
Moreover, the Ichimoku Cloud indicator emphasizes robust support at $263.86 and $290.68. If Bitcoin dumps as expected, AAVE could see a lower low. Hence, traders should watch these support levels for potential buying opportunities.
Consolidation Indicates Transition Phase
A triangular consolidation preceded an upside breakout, but the retracement signals indecision in the market. The daily chart highlights interaction with the Kijun-Sen and Tenkan-Sen lines, showing consolidation near resistance zones. Additionally, the Ichimoku Cloud’s thickness below the price suggests strong long-term support.
However, without a decisive push above $400, AAVE risks a deeper correction. The price may test key support areas before a potential bullish reversal. A possible rebound could lead to a $500 surge, supported by an ascending trendline from mid-November.
The structure suggests AAVE is transitioning, balancing between bearish retracements and bullish momentum. Besides resistance at $357.83 and $419.01, the asset faces bearish candlestick patterns signaling selling pressure. Consequently, traders should monitor lower support zones and consolidation levels for future price action clues.
The post AAVE Stalls at Key Resistance: Will Bulls Break $400 or Will Bears Take Control? appeared first on Crypto News Land.
