AAVE’s price action signals a potential correction as selling pressure intensifies, according to analyst Ali. The token recently dipped to $249.34 before closing at $257.71, marking a 2.57% decline. With a peak at $266.06 and an opening price of $264.51, market sentiment appears uncertain as bearish momentum takes hold.
$AAVE may be set for a pullback, as the TD Sequential indicator flashes a sell signal on the daily chart! pic.twitter.com/A7wEloCz98
— Ali (@ali_charts) February 18, 2025
Bearish Trends and Candlestick Patterns
AAVE’s chart reveals a sequence of black candlesticks forming lower highs and lower lows, confirming an initial downward trend. However, a white candlestick on February 10 hinted at a possible bullish reversal. Following this, the market entered a consolidation phase, characterized by alternating black and white candlesticks, reflecting indecision among traders.
Resistance Rejection at $270
AAVE saw a brief recovery, making higher highs and lower lows before encountering strong resistance at the $270 mark. The formation of a black candlestick with a long upper wick at this level indicates a firm rejection, signaling that buyers struggled to maintain upward momentum. This rejection reinforces the bearish dominance in the market, increasing the likelihood of further price corrections.
Key Trend Shift Indicators
Two pivotal points marked by arrows on the chart indicate trend shifts. The first, occurring around February 10, aligns with the white candlestick, suggesting a temporary bullish push. However, the second appears at a key resistance level, where a black candlestick follows a strong white one, underscoring hesitation and weakening bullish control.
Price volatility remains high, with candlestick wicks highlighting market indecision. While buyers attempt to establish dominance at higher price levels, sellers exert pressure on the lower range. The continued struggle between bulls and bears results in erratic price swings.
Key price levels continue to dictate AAVE’s movement. Short-term support remains at $249, but the inability to break past $270 signals a strong resistance zone. The recent formation of a rejection wick on a black candlestick further suggests sustained selling pressure.
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AAVE’s price action reflects ongoing uncertainty, with sellers maintaining an upper hand. As long as resistance at $270 remains intact, the risk of further declines persists. Traders should watch for potential support tests and resistance breakouts to gauge future movements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
