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AAVE’s price action climbed above the $122 price zone to flip the level back to support. Over the past week, AAVE rebounded strongly from the $105 support level with an 15% pump from the support level.
Buyers have established the $105 support as a strong buying floor with a previous bullish pump from the price level on 6 March.
Our previous coverage of AAVE accurately predicted the altcoin crossing the $122 resistance level and extending its bullish rebound. Here’s a look at how you can leverage this buying opportunity.
Buyers Back in Control
After halting the selling pressure with a strong bounce from the $105 support level, buyers needed to translate the strong buy floor to a bullish advantage. This happened with the Relative Strength Index (RSI) crossing the neutral 50 mark over the past 48 hours.
This highlighted the dominance of buyers in the market on the daily timeframe. Along with buyers crossing the $122 resistance, this provides an opportunity for another bullish run-up to the $150 price zone.
Thus, an entry at the current market price of $127 would yield 18% profit at the $150 price level.
Bullish Sentiment in the Futures Market
A look at the futures contracts for AAVE also showed that market participants were fully bullish. Data from Coinalyze revealed that both the short term and long term outlook for AAVE was in strong favour of buyers with over 70% of the futures positions currently long.
Additionally, the Funding Rates for AAVE were largely positive. Positive funding rates typically occur when more traders are taking long positions and expect an asset's price to rise in the future.
Combining the spot and futures market data, traders can leverage the bullish sentiment for long positions with double digit gains available in both the 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.
