For almost 3 months, the AAVE market has been in a correction phase. After a rapid growth wave from 6 November, the AAVE price began to slow down in the range of $520-545. Unsuccessful attempt of buyers to fix above this range on 10 February provoked the beginning of the correction of the AAVE market. During this correction, a wide consolidation range of $300-435 was formed, in which the AAVE price has been trading since 23 February.
Unsuccessful price fixing above $435 ended fatally
The last attempt of buyers to break the upper limit of this consolidation ended in failure. The start was good, buyers managed to fix above $435 on 16 April. However, on 18 April, all buyers’ achievements in 22 days of the local growth trend were destroyed by sellers with one daily candle:
For the last 3 months, this is already the third attempt of sellers to break the mark of $300. This fact makes us understand that this range saves the market from a strong fall to the level of $200. Considering the trading volumes at which sellers tested $300, there is a lot of interest in this token.
AAVE buyers are ready to continue local growth wave to $435
Now the price is in the middle of the consolidation range of $300-435. Buyers are preparing to continue the local growth wave with the first target of $435. On the 4-hour timeframe, you can see that sellers’ volumes for the fall continuation decrease with each attempt of their counterattack:
Therefore, it is quite possible that the AAVE market continues to grow from the price zone of $350-360. Though, one should not forget that this price point is local support. This should be taken into account when calculating risks per position.
AAVEBTC chart reveals all the cards
Also, the AAVEBTC chart makes you think cautiously when buying AAVE:
As we can see, the correction on the AAVEBTC chart does not take place in the form of consolidation, but in the form of a local fall channel. Buyers are trying to fix above the range of the previous all-time high. The probability of the correction continuation on the AAVEBTC chart is high. Therefore, we think that a new growth wave in the AAVE market will begin immediately after the breakout of the white corrective channel upwards. In this case, we will expect a new growth wave with the first stop at $900.
