AAVE consolidation before next move

16 thg 2, 2023

AAVE has been relatively subdued so far in 2023, achieving only (!) a ~84% increase since Jan.1, when it showed a strong impulse off of the double bottom at the end of 2022. It has played out that impulse and now sits below the strong band of resistance between $90-$100, though it has turned the daily 200 MA to support. If AAVE can break above 94.36 high from Feb. 3, then I'd expect a higher low at the resistance band, followed by continuation with a new impulse up to at least 113, and maybe higher after that.

Trend (21 EMA > 55 EMA) and momentum indicators are bullish on nearly all timeframes, but the market in general is looking toppy, with BTCUSD approaching 0.618 off of the early 2023 lows. Probably due for a retracement after this latest push. If it fails to break 94.36, I expect a precipitous drop to support at the 0.382 (~$67.2), which is also the neckline of the double bottom. Risk management and tigth stop loss for long positions on this one, if not waiting for retracement. Good luck