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AAVE’s uptrend hit a price barrier around the $120 - $130 price zone. Since then, the altcoin has dipped in price with sellers driving the downtrend. However, the selling action has stalled at the $84 support level which was critical to its last bullish run in November 2023.
This offers bulls an opportunity to reverse the price retracement and get back to the $100 price level. Here’s how you can profit from a bullish rebound from the $84 support level.
Running on the Ethereum blockchain, Aave is a decentralised non-custodial liquidity market protocol where users can participate as suppliers or borrowers. The AAVE token is used for Aave Protocol governance. The token can also be staked within the protocol Safety Module to provide security/insurance to the protocol/suppliers. Stakers earn staking rewards and fees from the protocol.
Buyers Can Leverage This Support Level for Bullish Rebound
A look at the previous price action by AAVE buyers showed the strength of the $84 support level. Price surged from this critical support level in November 2023 and a retest of the level produced another price jump above $100.
Furthermore, the presence of a bullish order block at the $82 to $90 price zone strengthened the bullish position. However, the underlying signals from on-chart indicators remained negative, as of press time.
The RSI (Relative Strength Index) stayed under the neutral 50 with a reading of 35. This hinted at the presence of existing selling pressure. Similarly, the capital inflow remained muted with a negative reading despite the CMF (Chaikin Money Flow) registering a spike from -0.26 to -0.10.
As such, buyers looking to enter buy positions will have to exercise caution. A risk averse way to approach the buy entry will be to wait for a bullish candle close on the four-hour timeframe before entering the buy position.
This will allow buyers to be positioned in the case of an extension of the selling pressure.
Profit target for the potential buy lies at $100 which offers a 23% return from the current market price.
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.
