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Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
- The market structure is bearish on the hourly chart after failing to break past $81.
- The four-hour chart has a bullish outlook and could see Aave surging higher.
Bitcoins [BTC] has seen anywhere from $28400 to $27300 over the past 24 hours to press time. The Fed’s policy meeting on March 21 and 22 could see the crypto king break out of this short-term range. Meanwhile, altcoins like Aave [AAVE] presents lower timeframe trading opportunities.
Read Aaves [AAVE] Price Predictions 2023-24
With major economic news coming soon, volatility is likely to be high in the crypto market over the next 48 hours. Therefore, risk management, which must always be the top priority, will be very important.
Short-term mid-term levels can offer resistance
Source: AAVE/USDT on TradingView
Over the past week, AAVE has been trading in a (yellow) range from $73.2 to $81.6. The mid-range value sits at $77.4. Over the last two days, this level was broken as a support level and turned around to become resistance.
The last few trading hours saw a price bounce towards the mid-range mark. However, the RSI has yet to break past the neutral 50 mark. The DMI also shows a downtrend with ADX (yellow) and -DI (red) above the 20 mark.
Therefore, a short-circuit opportunity may arise on a retest of mid-range levels. It will be reversed at the close of the H1 session above $77.2, but some volatility may exist. A stop-loss closer to $79 can be set, as this will invalidate any bearish ideas.
A move above $79 would suggest that the bulls are back in the driving seat and could push AAVE towards $82. More risk-averse market participants may want to wait for a rejection from $77.2 before entering short positions.
How much is 1,10,100 AAVE worth today?
The decline in Open Interest notes desperate buyers
Source: Coinalyze
Over the past two days, in addition to falling prices, Open Interest has also fallen. This means that long positions have been forced to close, but short sellers have not entered the market in large numbers. Hence, the sentiment behind AAVE is bearish, but not overly so.
Funding levels are close to zero but in positive territory, meaning buyers have a slight edge. However spot CVD has been in a constant downtrend over the past week. This indicates strong selling pressure.
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