AAVE Rejected At $335 Resistance, Technicals Point To 31% Correction

The cryptocurrency market is a rollercoaster, and AAVE is no exception. Recently, AAVE has faced a significant resistance at $335, which it failed to break through. This rejection could signal a potential 31% correction in the near future. Let&039;s dive into what this means for AAVE investors.

AAVE Rejected At $335 Resistance, Technicals Point To 31% Correction

In the past few weeks, AAVE has been on a steady climb, reaching a high of $340 before encountering resistance at the $335 level. This resistance is significant because it marks a key technical level that the price has failed to breach multiple times. When an asset fails to break through a critical resistance level, it often signals that sellers are more dominant than buyers at that price point.

AAVE Rejected At $335 Resistance, Technicals Point To 31% Correction

From a technical analysis perspective, the rejection at $335 is not just a one-time event but part of a broader trend. Various technical indicators point towards a potential correction in AAVE&039;s price. For instance, if we look at the Relative Strength Index (RSI), it has entered overbought territory, suggesting that the current upward momentum might be unsustainable. Additionally, the Moving Average Convergence Divergence (MACD) indicator is showing signs of divergence with the price action, which often precedes reversals.

AAVE Rejected At $335 Resistance, Technicals Point To 31% Correction

Moreover, historical data shows that when AAVE has encountered this resistance level in the past, it has often led to significant corrections. For example, in March of last year, AAVE hit similar levels before experiencing a sharp drop of around 20%. While this isn&039;t an exact comparison due to market conditions changing over time, it does highlight the importance of this resistance level.

AAVE Rejected At $335 Resistance, Technicals Point To 31% Correction

Looking ahead, if AAVE does indeed experience a correction of around 31%, we could see the price drop to around $229 (calculated as $340 - 0.618 ($340 - $229)). However, it&039;s crucial for investors to remember that technical analysis is not an exact science and should be used in conjunction with other forms of research and analysis.

In conclusion, while AAVE&039;s recent performance has been impressive, the rejection at $335 resistance suggests caution moving forward. Investors should be prepared for potential volatility and consider adjusting their strategies accordingly. As always in crypto investing, thorough research and risk management are key.

AAVE Rejected At $335 Resistance, Technicals Point To 31% Correction