Aave (AAVE) Token Bounced After the Market Crash, But the Recovery Could Be Short-Lived
- PHPzOriginal
- 2024-08-10 12:02:30282browse
The protocol also saw milestones in July, such as the proposed introduction of a “fee switch.”despite market-wide losses earlier this month.
The protocol also saw milestones in July, such as the proposed introduction of a “fee switch” despite market-wide losses earlier this month. This idea was tossed out of the window during the sell-off on Monday the 5th of August.
AAVE’s 1-day market structure remained bearish on the 1-day chart. It fell to the 78.6% Fibonacci retracement level at $78.71 and bounced to the $106 level.
The OBV has trended upward since the 5th of August, but the CMF fell to -0.2 to signal heavy capital flow out of the market.
The MVRV ratio fell from nearly 30% to -2%, showing short-term holders were at a profit before the price crashed below $100. During the price drop, the dormant circulation saw an uptick.
Together, it indicated holders cashed out and likely took profits. This idea was supported by the fall in the mean coin age too, which showed an AAVE distribution.
The liquidation heatmap underlined a short-term target at $108.5, and a much stronger liquidity pool at $118-$120. This could serve as a near-term target for the AAVE token before a pullback.
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