AAVE (AAVE) Poised for Uptrend as Bulls Eye Golden Cross Formation

Aave [AAVE] ended the past week positively, showing strong performance. However, it has experienced a decline in the last 24 hours. Despite this recent downturn, indicators suggested that its price could be poised for further uptrend in the coming week.

Aave (CRYPTO: AAVE) showed promising signs of a continued uptrend in the coming week, despite a recent decline in the last 24 hours. Here's a closer look at its price performance and key indicators.

Aave's price showed a promising recovery from a recent downturn, with a daily gain of over 1.30%. At press time, AAVE was trading at around $112.37, according to AMBCrypto. This marked a significant increase from its lows of around $90 in August.

AAVE's long and short moving averages, represented by the blue and yellow lines, were converging at around $99.86 and $97.67, respectively. These moving averages provided support for AAVE's price, indicating a solid base for its recent uptrend.

AAVE's Relative Strength Index (RSI) was at 60.76, suggesting that it was in bullish territory but not yet overbought. This indicated that there was still room for further upside before the RSI reaches overbought conditions (typically above 70).

AAVE's Moving Average Convergence Divergence (MACD) line was at 1.32, with the signal line at 1.60, both in positive territory. This indicated that the momentum was bullish, with a potential for further uptrend in the coming days.

However, despite these bullish indicators, data from CoinMarketCap showed that AAVE was among the losers in the last 24 hours, having lost over 1%. This recent dip earned it a spot among the top losers, reflecting short-term volatility or profit-taking.

Interestingly, AAVE still stood out as the second-highest gainer over the past seven days, with a notable 18% increase. This indicated that the recent downturn was a minor setback in its overall uptrend over the last week.

AAVE's moving averages were positioned for a potential golden cross if the price continues to rise, suggesting that AAVE was primed for positive price movement. A golden cross, where the short-term moving average crosses above the long-term moving average, is typically seen as a strong bullish signal.

AAVE faced significant resistance at around the $120 level, a psychological barrier that previously acted as resistance. If AAVE can successfully break through this level, the next target could be around $130, representing a previous high and the next logical resistance zone.

While the indicators are predominantly bullish, with the RSI and MACD supporting the case for further upside, traders should be cautious of potential retracements. In the event of a pullback, AAVE could find support around the long moving average at $99.86 and the short moving average at $97.67.

However, if AAVE breaks below these moving averages, it could signal a shift back to bearish sentiment. The price could test the $90 level, where previous support was established.

An analysis of AAVE's 30-day Market Value to Realized Value (MVRV) showed that holders were largely profitable at press time. The MVRV climbed above zero on the 13th of August and has remained in positive territory since then. As of this writing, the MVRV was around 10.45%, according to Santiment.

This trend indicated that holders who purchased AAVE within the last 30 days held an average profit of over 10%. A positive MVRV ratio typically reflects strong market sentiment, suggesting that the current holders were not only in profit but also confident in the asset's value.

The above is the detailed content of AAVE (AAVE) Poised for Uptrend as Bulls Eye Golden Cross Formation. For more information, please follow other related articles on the PHP Chinese website!