AAVE about to catch up to bullish momentum - LONG
Updated
AAVE is painting a bullish W recovery candle formation assuming a weekly close above 318 today. Daily timeframe has pierced the RSI 50 level on the bullish side. There are three higher bottoms in RSI. On the weekly timeframe we have tapped the liquidity zone three times with relatively large wicks. AAVE is below EMA55 and MA200 on the daily timeframe and this would be the fourth time time it would attempt to go above MA200 and in my experience fourth time is the charm (same logic is seen in falling wedges which break to the upside).
One thing of concern is the low volume, but that is normal during a bitcoin approach near ATH, as money shifts out from alts into BTC. However as BTC begins to range near the 60k area we are likely to see some upside in the altcoins.
There is an ongoing governance proposal to launch AAVE on Fantom and votes are predominantly "yes". Within few days once the proposal is passed we may see a boost in the price action. However be wary of the old saying "Buy the rumour, sell the news."
STOP LOSS: It is hard to play this with a stop loss as the low volume could result in scam wick just before the big move, but one indisputable invalidation sign would be a daily candle close below 278.
First major resistance is at 378, once we break it targets are:
T1: 418
T2: 477
T3: 522
One thing of concern is the low volume, but that is normal during a bitcoin approach near ATH, as money shifts out from alts into BTC. However as BTC begins to range near the 60k area we are likely to see some upside in the altcoins.
There is an ongoing governance proposal to launch AAVE on Fantom and votes are predominantly "yes". Within few days once the proposal is passed we may see a boost in the price action. However be wary of the old saying "Buy the rumour, sell the news."
STOP LOSS: It is hard to play this with a stop loss as the low volume could result in scam wick just before the big move, but one indisputable invalidation sign would be a daily candle close below 278.
First major resistance is at 378, once we break it targets are:
T1: 418
T2: 477
T3: 522
Trade closed: target reached
Closing the position due to the Cream hack which also mentioned AAVE and possibly caused Justin Sun to withdraw billions from the platform, leading to the massive dump from 460+ to 330.Since T1 was reached and T2 was reached on some exchanges I'm marking this as successful position all things considered.
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