$AAVE

AAVE's 60% Weekly Gain 👉 Attention! RSI at 71

AAVE has gained over 60% in the last 7 days, surpassing $140, its highest level since February. At the time of writing, the price is at $139.04, up 10.11% on a daily basis. So, how far will this rally continue, or is a correction coming?

The Dynamics Behind the Movement

This rise in AAVE is running parallel to the renewed interest in the DeFi sector. AAVE is one of the strongest brands among decentralized lending protocols, and the market is pricing in this potential.

Technically, the price has risen above all moving averages (MAs). The break above the $130 level, in particular, has been interpreted as the beginning of a new upward wave.

However, Technical Analysis is Warning

The RSI (Relative Strength Index) is at 71.36. This, according to the classic definition, is in the overbought region. When the price rises this quickly, the likelihood of profit taking and a short-term correction increases.

More importantly, multi-timeframe technical signals are giving a bearish warning. This means there is uncertainty about the short-term price direction. A struggle is underway between a bullish trend and overbought pressure.

Support levels: $130 and $120.88 (24-hour low)
Resistance level: $142.16 (24-hour high)

AAVE is in a strong uptrend fueled by the DeFi momentum. However, the RSI approaching 71 and the weakening short-term signals are prompting investors to exercise caution. Those wishing to open new positions at these levels should keep their stop-loss levels tight.

Check out the AAVE/USDT trading pair now to closely follow this market activity and take positions!

DYOR 🔎 NFA ✔️
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