AAVE just finished a bearish week along with most cryptocurrencies in the market. Despite this result, it remains one of the biggest competitors to the bulls as the market enters a new week. Here’s why –
AAVE’s bearish performance over the past seven days has resulted in a discount of up to 18%. This alone is enough to encourage inflows from investors hoping to take advantage of the weekly discount. Unfortunately, this is not the only factor currently favoring a potential bullish pivot.
AAVE price action, at the time of writing, was hovering above the $77 support level.
The support level enhances the possibility of an upward rebound in the coming week. AAVE’s RSI and MFI both looked bearish for the week, but they also seemed to indicate a slowdown in bearish momentum. This result was reflected in price action, with the same recovery slightly at the time of writing.
The above note confirmed that investor sentiment had changed and the on-chain metrics also gave adequate confirmation. AAVE weighted sentiment posted a strong rally since September 13th, and the same is now in the positive range.
This confirms that the general sentiment is now in favor of the bulls.
Supply from major stock market headlines rose sharply between September 13-15, but fluctuated rapidly. This may be a sign that some whales are accumulating and moving their coins from the exchanges. If so, this is a bullish sign.
The AAVE delivery distribution also confirmed that selling pressure is easing. Titles with between 100,000 and 1 million coins have contributed to most of the selling pressure over the past seven days. But outflows from these addresses quickly declined.
Addresses with more than one million coins currently control the lion’s share of AAVE’s supply. These titles have increased their balances over the past five days, facing selling pressure. This is a sign of a change in feelings.
The above metrics reversed AAVE’s changing price trajectory while making a strong case for some potential upside in the coming days. However, this forecast does not take into account possible unexpected changes in the market. So the expected result is likely not a guarantee.