Aave Analysis | Key Levels on 1D TF
Updated
After a significant rally in early 2024, AAVE experienced a 52% retracement and entered a consolidation phase, trading within a broad range for a month. During this sideways trend, the price couldn't break above $97, forming a series of lower highs and lower lows, indicating consolidation. The substantial trading volume within this range reinforces it as a key support zone, suggesting that many market participants view these levels as attractive for accumulation.
The chart shows that the price has broken above the Ichimoku cloud from below, which is a bullish signal. However, note the resistance around the upper boundary of the cloud near $115 and the formation of a (Doji or Inverted Hammer) candlestick pattern on the 1D TF, indicating market uncertainty or a potential correction.
Currently, the price is around $108, positioned above a significant support zone but below a key resistance level. This places the price in an intermediate zone where consolidation might occur before the next notable upward movement.
🟢 Bullish scenario: If the price breaks above the $115 level and holds, we can expect further growth to the next significant resistance around $130. Increased trading volume in this area can lead to heightened volatility, providing opportunities for short-term traders to capitalize on rapid price movements.
🔴 Bearish scenario: If the price retraces and breaks below the $97 support level, it may test lower support levels around $88. This move would confirm the significance of this area as a support zone and could indicate potential buying opportunities during the pullback.
Conclusion: The volume profile on this chart highlights key support and resistance levels that can be used to determine entry and exit strategies. Closely monitoring trading volumes in these areas will help you better understand market sentiment and make more informed trading decisions.
The chart shows that the price has broken above the Ichimoku cloud from below, which is a bullish signal. However, note the resistance around the upper boundary of the cloud near $115 and the formation of a (Doji or Inverted Hammer) candlestick pattern on the 1D TF, indicating market uncertainty or a potential correction.
Currently, the price is around $108, positioned above a significant support zone but below a key resistance level. This places the price in an intermediate zone where consolidation might occur before the next notable upward movement.
🟢 Bullish scenario: If the price breaks above the $115 level and holds, we can expect further growth to the next significant resistance around $130. Increased trading volume in this area can lead to heightened volatility, providing opportunities for short-term traders to capitalize on rapid price movements.
🔴 Bearish scenario: If the price retraces and breaks below the $97 support level, it may test lower support levels around $88. This move would confirm the significance of this area as a support zone and could indicate potential buying opportunities during the pullback.
Conclusion: The volume profile on this chart highlights key support and resistance levels that can be used to determine entry and exit strategies. Closely monitoring trading volumes in these areas will help you better understand market sentiment and make more informed trading decisions.
Note
Disclaimer:Content for seasoned traders only. Not financial advice. You bear sole responsibility for trading outcomes. Conduct due diligence.
Always remember the golden rule of investing: never risk more than you can afford to lose. Trade carefully and wisely. May each of your transactions be successful!
Disclaimer
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