- AAVE token shows a morning star pattern in the daily time frame
- The AAVE/BTC pair was trading at 0.006493 BTC with a gain of 6.01%
- The 24hr trading volume in the AAVE token is 639.51 Million.
In the daily time frame, the continuous fall of the AAVE coin finally takes support at the $200 level by giving a long tail hammer type candle and followed by a green candle today, making it a morning star pattern. Currently, the price is at $220, with a 7% gain in the intraday session projecting a price rise from the level.
About the EMA’s, the AAVE token is trading below the critical EMA’s 20, 50, 100, and 200 indicating a strong bearish trend formation. In addition, investors can see that there is a bearish crossover of 20 and 200 EMA supporting the original downtrend.
The RSI (BEARISH) current value is 36, indicating the bearish momentum is intact.
The Descending Trendline Keeps The Downtrend Intact For The AAVE Coin
The 4hr time frame chart of the AAVE token shows a clear view of the descending trendline showing high reliability as the price respects this line since the $525 level. As price continues to fall, this trendline could offer multiple short opportunities whenever the price reverses from this line. As long as this trendline is not breached, the downtrend will remain intact.
The MACD indicator (BEARISH) shows a bearish momentum in the price as both lines are moving in the overselling zone. However, the indicator just gave a bullish crossover of the MACD line and the signal line supporting the morning star pattern in the price. Also, the histogram has started to show some green bars.
Conclusion: From the technical perspective, the overall sentiment for the AAVE token remains bearish. As mentioned above, the price is near the $200 support, and Investors can grab a short opportunity if this level is broken or whenever the price goes back to the descending trendline to reverse from it.