The AAVE whale’s decision to reduce its holdings followed a 14% decline in the value of AAVE over the past week, suggesting that the whale may not be optimistic about the potential for further price growth in the short term.AAVE price declines as accumulation wanes
At press time, AAVE exchanged hands for $79.06. While the alt’s price declined by 3% in the last 24 hours, its trading volume rallied by almost 30% during the same period, data fromThis sort of price/trading volume divergence often indicates that there are more sellers than buyers in the market. It could be because there are more traders taking profits or an isolated incident that has caused traders to liquidate their positions quickly.
On a daily chart, the significant decline in buying pressure resulted in the commencement of a new bear cycle on 22 February, putting the bears back in control of the market. A look at AAVE’s moving average convergence/divergence showed that the indicator has since been represented by red histogram bars, signaling a wane in buying momentum.
Moreover, key momentum indicators were spotted below their respective neutral zones at press time. For example, AAVE’s Relative Strength Index trended downwards at 43.20, while its Money Flow Index reached for oversold zones at 37.29.The positions of the RSI and MFI showed the state of liquidity exit from the AAVE market, as buying pressure declined significantly since the bear cycle started. Should this continue, AAVE’s price is expected to dip further.
AAVE bears had control of the market at press time. This was evident from the token’s Directional Movement Index readings. As of this writing, the sellers’ strength at 20.29 rested above the buyers’ at 16.16.Subscribe to get it daily in your inbox.
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Source: CryptoAmb - 🏆 22. / 68 Read more »