Can AAVE Bounce After Releasing App? | Credit: Hameem Sarwar
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Key Takeaways
Aave introduced the Aave app on the official App Store.
The AAVE price trades inside the $170 support area.
Can AAVE bounce inside support and begin to rally?
On Nov. 17, Aave officially introduced its application on the App Store. The Aave App is marketed as a more innovative way to save, giving up to 9.00% Annual Percentage Yield (APY) on your savings.
The AAVE price trades inside the $170 horizontal support area, which is the final one before the cycle low.
Can the positive news trigger an AAVE price bounce, or is another breakdown inevitable? Let’s find out.
AAVE Price Analysis
The daily AAVE price action has shown a decrease within a descending parallel channel since its cycle high of $386 in August.
On Oct. 13, the AAVE price fell to a low of $79.51 before bouncing and moving back inside the channel.
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Despite the severity of the decline, the long lower wick did not cause a breakdown from either the channel or the $170 horizontal support area.
While AAVE prevented a breakdown, it did not break out of the channel. Instead, it continued to decrease inside it, falling back to the $170 horizontal support area today.
The $170 area is critical since it is the final one before the April lows of $125. Therefore, if AAVE fails to bounce here, it will likely break down and hit the channel’s support trendline at $125.
Momentum indicators suggest this will happen. The Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) broke down from their bullish divergence trend lines.
Therefore, despite the positive news regarding the App Store release, the AAVE prediction remains bearish, and the price is likely to break down from the $170 horizontal support area.
Can AAVE Bounce?
While the daily time frame technical analysis is bearish, the short-term two-hour one suggests some AAVE relief could follow.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
