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After a long lull in the AAVE cryptocurrency market, the first rays of positivity for investors appeared. Having prepared the foundation for breaking the $334 mark last week, buyers managed to raise the price by 50% in just one day. However, such an investigation of buyers sellers’ presence in the market was not very successful. As of 29 October, the AAVE weekly candle has every chance of closing with a big pin down and below the $334 mark. This scenario will maximize the chances of sellers to start a new fall wave with a global target of $170. The last level of buyers’ protection is in the $285 mark range.
As we check the monthly chart patterns, this range kept the price perfectly from February to May 2021. Of course, under the influence of high volumes in May, sellers managed to break the liquidity zone of $285 down. However, if sellers now have no plans to start forming a new fall wave, this range will withstand local correction.
In addition, in the case of such a correction at around $285 will be an ideal point of entry into the market, which provides both minimal risk and maximum profitability. If the range of $285 will be kept, the main target of buyers in the medium term is around $700.
Technical Analysis of AAVE in the Daily Timeframe
Analyzing the AAVE price chart, you can see the abnormal trading volumes during 27 October. It so happened that on this day Bitcoin decided to try to organize a new fall wave. This fact coincided with a sharp AAVE price growth. So at the moment, we see a powerful pin up in the daily timeframe. But, on the second day, sellers do not even try to organize a counterattack and take the initiative.
Therefore, to consider the daily candle from 27 October as a pattern for the reversal of the AAVE market is wrong and in this case, it does not need to pay attention. In this case, we see that the trend of a new local growth wave from 28 August is developing rather sluggishly. To activate it, buyers need to pass a second strength test near the $296 mark. Keeping this local mark, buyers will feel the weakness of sellers and will be able to confidently start a new growth impulse with the first target of $520.
The AAVEBTC Price Is on the Verge of Completion of the Correction
Quite a good prospect appears on the weekly AAVEBTC price chart. The price has been moving in the local fall channel since May. However, this downward trend is much weaker than the upward trend that was before May. Therefore, we cannot consider the current downward trend in AAVE prices as a reversal. The price falls without much volume and aggression. This week, the first signs of completion of the correction began to appear in the form of a price shot up. Thus, taking control of the range of 0.0064 buyers will provide themselves with every chance to increase the AAVEBTC price with the first target of 0.012.