AAVE Selling pressure is easing, but can bulls really take advantage?
AAVE just ended a bearish week along with most of the major cryptocurrencies on the market. However, despite this result, he remains one of the top contenders for the bulls as the market enters a new week. Here's why -
AAVE's discount activity over the past 7 days resulted in a discount of up to 18%. This alone is enough to encourage the entry of investors hoping to take advantage of the weekly discount. Unfortunately, this is not the only factor currently favoring a potential uptrend.
AAVE's price action, at press time, is hovering just above its $77 support.
The support level continues to reinforce the upside potential next week. The RSI and the AAVE MFI look lower for the week, but also seem to suggest that the downside momentum is faltering. This result has been reflected in its price action, and it has moved up a bit at the time of writing.
The aforementioned observation confirms that investor sentiment has changed and the on-chain metrics also provide accurate confirmation. AAVE Weighted Sentiment has posted a strong rally since September 13, with the same level now in a positive range.
This confirms that the overall sentiment is currently in favor of the bulls.
The supply in the hands of indexes of major exchanges saw a strong rally between September 13 and 15, but quickly changed. This could be a sign that some whales are hoarding and taking their coins off exchanges. If that is the case then that is a bullish sign.
The supply of AAVE distribution also confirmed that selling pressure is easing. Addresses containing between 100,000 and 1 million coins have largely contributed to the selling pressure over the past 7 days. However, the outputs from these directions quickly declined.
Addresses holding over 1 million coins currently control the majority of the AAVE supply. These addresses have increased their balances in the last 5 days, so selling pressure is off. This is a sign of emotional change.
The aforementioned indicators reflect AAVE's changing price trajectory, while also presenting a strong case for the upside in the coming days. However, this expectation does not take into account unexpected changes that may occur in the market. Ergo, expected results are not likely to be guaranteed.
Sep 18, 2022