A significant AAVE whale purchase of $15 million followed the altcoin’s dip to around $239, marking a notable buying opportunity. This influx of capital triggered a swift rally, pushing AAVE’s price up by approximately 10% shortly afterward. However, this bullish momentum was temporary, as the cryptocurrency retraced again at press time. Despite the pullback, rising capital inflows continue to support a generally bullish bias for AAVE in the near term.
Bullish Trend Faces Resistance Near $280
Analyzing the AAVE 1-day chart reveals a consistent bullish market structure since May 8, characterized by a sequence of higher highs and higher lows. However, in the last two weeks, AAVE’s price has entered a consolidation phase, forming a short-term range with equal highs and lows around the $280 resistance level. This range-bound trading signals a pause in the upward momentum.
Key technical indicators provide mixed signals. The Accumulation/Distribution (A/D) indicator shows steady buying pressure but hasn’t reversed its trend significantly, suggesting that demand remains but has slowed. Similarly, the Chaikin Money Flow (CMF) indicator remains positive at +0.06, reflecting capital inflows, though it has dropped from +0.23 recorded on May 25. The Relative Strength Index (RSI) also indicates bullish momentum but approaches a critical threshold; a dip below the neutral 50 line could signal a potential trend reversal.
4-Hour Chart Points to Emerging Bearish Pressure
Zooming in on AAVE’s 4-hour chart reveals a well-defined range between $240 and $280 over the past two weeks, with a midpoint around $260. At the time of writing, the price slipped below this mid-range level, hinting at increasing bearish pressure.
Also Read: AAVE Price Surges 63% in 30 Days—Whale Activity Hints at $400 Target
Despite this, both the A/D indicator and CMF still show steady buying interest, suggesting that some investors remain optimistic. However, the RSI stands at 49.3, underscoring that bearish momentum is beginning to build. This technical setup indicates a cautious outlook where AAVE might face challenges breaking out above $280 unless new buying interest intensifies.
AAVE’s price action reflects a consolidation phase after a notable whale purchase and a brief rally. While capital inflows support underlying bullishness, key technical signals highlight the need for careful monitoring as the altcoin battles resistance near $280 and potential bearish momentum emerges on shorter timeframes.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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