The Aave crypto price has experienced a significant rejection at the $390 resistance level, a threshold that has remained untouched throughout the year. Currently, Aave is approaching the $227 level, a crucial confluent zone that could maintain the optimistic trend if successfully defended.
Key Developments and Technical Points
Aave’s inability to break through the $390 resistance triggered a correction, accelerating the downward trend. However, the price is now nearing a critical support cluster at $227, which combines the 0.618 Fibonacci retracement with a structurally significant region. This level is vital for the continuation of the bullish trend.
The rejection at $390 was the culmination of Aave’s recent attempt to break through the high-time frame ceiling. This resistance has not been tested since the beginning of the year, making it a substantial obstacle to the upward trend. Following the rejection, the loss of the value range intensified the downward trend, sending the price towards the $227 support zone.
Technical Analysis and Market Structure
The $227 support level is of great importance, as it offers the technical weight necessary to serve as the basis for the next rally. If Aave defends this level, the bullish market structure remains intact, with higher lows indicating favorable wider views. The volume remains a key factor in confirming a reversal from this region, with the demand needing to occur in sporadic, continuous bursts to support higher rotation.
Aptusdt (1d) – paragraph type | Source: Tradingview
The volume behavior has characterized earlier legs of the upward trend, and its return would validate the case for a further higher low formation at $227. If AAVE defends $227 with strong bullish volume, the price campaign will likely turn higher, resuming its upward trend and testing the $390 resistance again. A clean break of $390 would then open the door for higher destinations.
Expected Price Movement and Investment Considerations
However, failure to maintain the $227 level would weaken the bullish structure and risk a deeper correction. It is essential to note that this article does not contain investment advice, and the content and materials presented only serve for educational purposes. Readers should consult credible references and direct data citations before making any investment decisions.
Disclosure: This article does not contain investment advice. The content and materials presented on this page only serve for educational purposes.
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