- A dip beneath $79 flips the market to bearish.
- Some exchange outflows suggest minor bullish case possibilities.
Tether (USDT) Dominance climbed to 8.38% from 6.81% since November 5. That indicated that market players escaped the cryptocurrency market, preferring holding stablecoins like Tether. Meanwhile, the FTX bankruptcy news saw fear dominating the market. Aave performed somewhat impressive within the previous month.
The alternative token surged approximately 45% to $98.4 from $67.2 before losing nearly all those gains in one week. Meanwhile, the collaboration between Balancer and Aave might give holders a chance to put their coins to work.
Substantial Support Levels Broken
The twelve-hour chart shows Aave printed a bullish block around the $72 value area on October 13. Suffered another dip into the order block, offering high timeframe traders a chance to execute long positions. Nevertheless, the market structure stayed bearish on the daily and 12hr timeframes.
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The bears have broken the $72 and $79 support zones. Thus, though the bullish invalidation notion was imminent, traders should be cautious. Bitcoin’s dip below the $18.6K – $18.2K zone deteriorated bulls’ hopes.
Further downsides appeared impending, and risk-averse market participants ready to trade with market trends might wait for better risk-reward entries into short positions.
The RSI (Relative Strength Index) dropped beneath the 50-neutral and highlighted massive bearishness. Also, the OBV (On Balance Volume) dropped beneath the support from September, which stretched back to July.
Markets await to witness whether Aave will see further dips below $68 or welcome a notable rebound within the coming few days. However, it remained clear that AAVE presented an opportunity to execute long positions. A 24hr session closing beneath $64.7 might signal a position close and subsequent support stand at $56.
Coins Moving Out of Leading Exchanges
Aave’s Binance funding rate remained positive over the past few weeks. AAVE toppled $98.4 before the funding rate plunged into the pessimistic region. A fascinating finding from on-chains was that high inflows into leading exchanges weren’t present within the past few days. That might suggest an imminent massive selling momentum.
Contrarily, the last 48 hours saw coins flowing out of the leading exchanges. That indicated the chances of whales scooping the alt, regardless of the substantial dip. Such a case might see Aave escaping the bearish wave soon.
Meanwhile, it may be inadvisable to trade against the broader mark. Moreover, wary investors can wait for reversal signals before purchasing the asset.