AAVE Stalls in Range Ahead of FOMC, Can Bitcoin Push It Above $100?
• Aave (AAVE) has been trading in a sideways range since mid-January, currently hovering around $86.4.
• The current price action has created critical supply and demand zones, offering swing traders profit levels.
• Price action could change after the FOMC announcement, with a bullish Bitcoin pushing AAVE to break above the range and target the pre-FTX level of $96.4 and the $100 zone.
Aave (AAVE) has been trading sideways since mid-January, with the current price hovering around $86.4. The sideways structure has created critical supply and demand zones, which can be utilized by swing traders to make profits. This could potentially change next week after the Federal Open Market Committee (FOMC) announcement. A bullish Bitcoin could push the price of AAVE to break higher and reach the pre-FTX level of $96.4 and the $100 zone.
The 12-hour chart of AAVE shows an RSI of 61, which indicates that the coin is still in a bullish zone. Additionally, the Money Flow Index (MFI) has been rising sharply, showing that accumulation is ongoing. However, AAVE is currently facing a resistance zone at $90. Short traders could offload their holdings at this zone to gain short-term profits. If the price drops below the demand zone ($76 – $80), the bullish momentum could be invalidated.
The future direction of AAVE is expected to be largely determined by Bitcoin’s price action. If Bitcoin continues to move higher, AAVE can break above the range and target the pre-FTX level of $96.4 and the $100 zone. On the other hand, if Bitcoin doesn’t experience any significant bullish action, AAVE may remain in its current range.
It will be interesting to see how AAVE’s price action develops in the coming weeks. With the FOMC announcement just around the corner, investors are likely to keep an eye on the king coin to get an idea of where the altcoin market is headed.