What you need to know
AAVE has gained momentum since it rejected a major market gap, and held trendline support. A potential rally is signaled by waning outflows despite cooling spot activities.
Aave’s [AAVE] The price is showing renewed strength. The altcoin managed to transform a recent decline into a springboard.
The token bounced after sliding down into the gap created by the last rally. It has risen more than 5% over the past 24 hours.
The confluence is a convergence of support
It was no accident that the rebound occurred. Prices held right at a confluencing zone of a rising trendline and the filled gap zone at around $270 — a level that has now produced three solid bounces since April.
Investors and traders alike should pay attention to this confluence. Even after the choppy trading last week, it seems that AAVE is still respected by the market.
TradingView
AAVE is bullish
Technical bullishness is further bolstered by the momentum indicators. AAVE’s Stochastic RSI drifts towards oversold territories, indicating a potential reversal for a bullish push.
AMBCrypto confirms the bullish sentiment in their analysis of recent CryptoQuants data on outflow. The AAVE is fading out, which means fewer tokens leave trading platforms.
This could indicate that the big investors are not in a hurry to increase their holdings.
CryptoQuant
Cautionary signs are sent out when cooling activity occurs
The Spot data did however raise some warning signals. The volume of Spot trades was lower than earlier in the month.
Bubble map data showed a cooling in trading activity. This suggests that the AAVE market has taken a breather.
In the past, a cooling-down did not mean that there were bearish signs. Reduced activity might indicate investors waiting for market confirmation.
CryptoQuant
The current technicals are bullish, but the chain metrics are mixed. This suggests that the rally could continue for a short time until the market changes its structure.
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Source: ambcrypto.com
