AAVE fell to a key demand zone – Is shorting too risky?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
AAVE traded in the $73 – $95 range in the past few days. Bitcoin [BTC] sharp decline on Thursday (2 March) sent the AAVE to retest its range support zone.
But it seems investors aren’t exiting the market, which could potentially boost a bullish recovery if demand increases for AAVE at its current discounted prices.
Read AAVE’s [AAVE] Price Prediction 2023-24
Source: AAVE/USDT on TradingView
The $95 level has become a key resistance, preventing bulls from inflicting further gains after the impressive rally in January. So far, the $90 – $95.5 zone has become a key sell pressure area.
Similarly, the $73 – $77.8 is a key support zone (green) that has seen significant demand in the past retests. If the trend repeats, the retest witnessed at press time could drive demand for AAVE at the current price level. Such a demand could push AAVE toward the sell pressure zone (red).
Bulls could be boosted if the price breaks above the price of control/value area above $80 (red line) and retest it. The Fixed Range Volume Profile (VRVP) shows the traded volume over a price range and highlights the price with the highest volume (red line).
A break and pull-back retest at $80.8 could boost the uptrend to target the supply zone – a potential 11% hike.
On the contrary, bears could undermine bulls’ efforts if they sink AAVE below the support zone. Such a downswing could see AAVE drops further toward $66.
The RSI fell gently over the past few days and was below 50 at press time, reinforcing that bears have leverage in the current structure. Similarly, the Average Directional Movement
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