• 29 May, 2024
News

Aave (AAVE) Gains Momentum, Eyes $70 Resistance Amid Bullish Surge

Aave (AAVE) traders are optimistic as the cryptocurrency recently experienced a robust 10% rally from a crucial support level of $61. This surge brought AAVE to the cusp of a $70 resistance level, accompanied by a noticeable rise in buying pressure. In parallel, Bitcoin (BTC) maintained its bullish momentum, quickly consolidating above the $29,000 mark and eyeing a potential move towards the $30,000 threshold. BTC is currently trading at $29,627.93 and is up 1.39% in the last 24 hours.

During the 4-hour timeframe, the Relative Strength Index (RSI) registered a reading of 57.93, signifying substantial buying pressure. This indicator hinted at the possibility of a sustained bullish advance toward the critical resistance level of $70. Additionally, the On Balance Volume (OBV) saw an uptick, signaling an influx of buyers eager to capitalize on the bullish momentum.

Aave/USDT 4-hour chart. Source: TradingView

Despite these positive indicators, the $70 resistance level has proven to be a formidable obstacle for buyers, rejecting the price twice on October 2 and 5. Nevertheless, investors remain hopeful, given the favorable market conditions, which may lead to further gains if the resistance is successfully breached. Potential upside targets lie at $75 and $80. Conversely, continued resistance could result in AAVE trading between $61 and $70. Aave price which currently rests at $66.33 is up 0.70% in the last 24 hours.

Coinglass data revealed that the recent price surge caught AAVE sellers off guard, with $309.98k worth of short positions liquidated, accounting for 76.86% of total liquidations. This development cascaded the funding rate, which remained predominantly positive despite a slight dip. This suggests that long traders dominate the market sentiment, potentially paving the way for AAVE to achieve another bullish milestone in the short term.

Aave (AAVE) has displayed notable strength with its recent rally, yet it faces a significant challenge at the $70 resistance level. Positive technical indicators, such as the RSI and OBV, bolster the bullish outlook, but investors should remain cautious of potential price rejections. The cryptocurrency market’s current dynamics and most long traders suggest that AAVE could be poised for further gains shortly.

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