On May 12th, the AAVE/USDT pair rebounded from the new lower low of $65.5 and reverted to the descending trendline. This pullback gives trade opportunities to short-sellers with a target of 25% down to $65.5. However, can they provide a legit breakdown from $65.5?
Key points:
- The AAVE price plans another reversal from the falling trendline
- The AAVE buyers regain the first line of EMA defense-20 DMA
- The intraday trading volume in AAVE/USD is $387 Million, indicating a 94% gain
Source- Tradingview
Under the influence of a descending trendline, the AAVE price has been gradually falling for nearly two months. During this phase, the altcoin turned down from the high of $250 and plunged to a low of $65.5 mark, registering a 74.4% loss.
Furthermore, the recent bullish pullback from $65.5 support surged the AAVE price 64% higher and retested the overhead resistance again. Moreover, the altcoin even breached an immediate resistance of $94.3, which may encourage buyers to breach the overhead resistance.
However, the AAVE struggles between the dynamic resistance and the new flipped support suggest an uncertain no trading zone.
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A bullish breakout from the above resistance would drive the altcoin 160% higher to $250.
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Alternatively, a breakdown from the $94.3 support would tumble the price 25% lower to the $65.5 mark.
Technical indicator
ADX indicator: A slight pullback in the daily-ADX slope indicates a loss of bearish momentum during the recent pullback to the resistance trendline. However, If the sellers successfully pull the coin price below $94.6 support, the ADX may rise back to accentuate the seller’s commitment.
Bollinger band: Along with the descending trendline, the midline of the Bollinger band indicator provides a dynamic resistance. Moreover, a failed attempt to reclaim this resistance could bolster the bearish theory.
- Resistance levels: $115 and $137
- Support levels: $96 and $80
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