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AAVE buyers found a price floor at the $80 level with a 5% rebound taking the altcoin above the $84 resistance level. Earlier in May, AAVE buyers had broken above the resistance level but quickly lost momentum, due to the selling pressure.
With bullish sentiment gradually returning to the market, buyers could be looking to solidify their positions at $84 and push on for more gains. We look at the feasibility of this price action in the short term.
AAVE buyers push to reach $100 price level
The flipping of the $84 price level to support by buyers for the second time in the month of May has provided a base for extending the bullish momentum to the $100 price level.
A long position from the current price level of $87 offers returns of up to 15%. In the event of a re-test of the new support level, the profit target could rise up to 20%.
This would serve as a good entry-level for buyers to ride AAVE’s bullish rebound with its earlier price action showing the tendency for the coin to make a series of higher lows, as price trends upwards.
Furthermore, the Relative Strength Index (RSI) maintained an upward trendline channel to reveal a strong bullish momentum along with a reading of 60.
Similarly, the Chaikin Money Flow (CMF) was also bullish with a significant positive reading of +0.34. This signaled a strong influx of capital on the lower timeframes.
This combination of bullish factors has AAVE firmly positioned to hit a higher price with dips an opportunity for buyers to add long positions.
Technical levels to consider for long positions
Support Levels: $80 and $84
Resistance Level: $100
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
