AVAX, MATIC, AAVE: Must-Watch Cryptos This Week

AVAX Records Six Consecutive Losing Candles

Avalanche (AVAX) faced a challenging week, experiencing a notable decline of 15.8%. The asset closed the week at $22.81, marking a period of consistent losses with six out of seven days showing declines.

Despite the downward trend, there was a slight uptick in the RSI-based moving average, which might indicate potential stabilization. Additionally, trading volume has gradually decreased, suggesting that the bearish momentum could be nearing exhaustion.

Key levels to monitor in the coming days include:

• Support Level: The recent low of around $22 may act as a support if the bearish trend persists.
• Resistance Level: A break above $24 could signal a shift in sentiment and potential recovery.

The next move for AVAX may largely depend on the overall strength of the cryptocurrency market, which contributed to the recent losses.

MATIC Collapses 26% in a Week

Polygon (MATIC) saw a significant drop of 26.5% last week, closing at $0.4196. This decline was triggered by a bearish engulfing candle on August 25, indicating that sellers had gained control of the market.

Polygon experienced seven consecutive days of losses despite increased network activity. The asset fell below the upper Bollinger Band on August 25 and the middle band on August 28, although it remained above the lower band.

Key observations for MATIC include:

• Support Level: The lower Bollinger Band around $0.3510 could act as support if the downtrend continues. A break below this level might indicate further declines.
• Resistance Level: A move above the middle Bollinger Band near $0.4568 might suggest a potential recovery.

The asset is currently in a clear downtrend but is not yet oversold, indicating potential for future price fluctuations.

AAVE Demonstrates Resilience

Aave (AAVE) showed relative strength compared to other assets last week, closing with a milder drop of 5.37% at $129.71. Unlike many other cryptocurrencies, AAVE avoided setting new lows and saw gains on two days.

The asset remained above both the 50-day EMA ($112.50) and the 200-day EMA ($101), suggesting a predominantly bullish outlook for the medium to long term.

Key points to watch for AAVE include:

• Support Level: The 50-day EMA at $112.50 is crucial. A dip below this level might signal a shift in market sentiment.
• Resistance Level: A move above $130 could indicate renewed buying interest and further bullish potential.

Overall, AAVE is in a stronger technical position compared to many other cryptocurrencies, though ongoing monitoring of key levels is essential for future market trends.