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The inability of AAVE bulls to flip the $105 resistance to support kept the altcoin stuck in its two-month-long price range. Earlier, AAVE oscillated between the range low of $84 and the range high of $105.
Despite the price rejection, buyers remained on course to push past the price resistance, based on the current price action and supporting on-chart indicators
Growing capital inflows spur buyers
The four-hour timeframe revealed the short-term outlook for AAVE. The sharp pullback from the $105 resistance level was swiftly curtailed by the injection of more capital by AAVE holders.
The positive reading by the Chaikin Money Flow (CMF) signaled the intention of buyers to bid strongly again for the key price level. This was echoed by the Relative Strength Index (RSI) staying above the neutral 50 to indicate sustained buying pressure.
Based on the price action and chart indicators, short-term traders can anticipate a bullish candle close on the four-hour timeframe. This will offer long opportunities with profit levels at $115-$120.
However, another bearish close below the key $105 price level will keep AAVE stuck in the price range for the near term.
Bullish sentiment boosted by buyers in futures market
Market speculators in the derivates market remained strongly bullish in the short term. Bullish speculators held a 51.49% share of the open contracts compared to the 48.51% share held by bearish speculators.
This portrayed a short-term bullish outlook for AAVE on both spot and futures markets.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
