Key Takeaways
AAVE is gaining momentum after rejecting a key market gap and holding trendline support. Fading exchange outflows signals potential rally despite the cooling spot activity raising caution.
Aave’s [AAVE] price action is showing signs of renewed strength. The altcoin has managed to turn a recent pullback into a springboard.
After sliding into a gap left by its last rally, the token caught a sharp rejection and bounced, climbing more than 5% in the past day.
A confluence of support
The rebound was not random. Prices held right at a confluencing zone of a rising trendline and the filled gap zone at around $270 — a level that has now produced three solid bounces since April.
For traders and investors alike, that confluence is worth paying attention to. It suggests the market still respects AAVE’s short-term structure, even after last week’s choppy action.
AAVE leans bullish
Momentum indicators also strengthen the bullish technical outlook. AAVE’s Stochastic RSI is drifting towards an oversold territory, pointing to a potential reversal points for another bullish push.
Interestingly, AMBCrypto’s analysis on the recent CryptoQuants exchange outflow data affirmed the bullish bias. AAVE outflows are fading, meaning fewer tokens are leaving trading platforms.
That could be a sign that big holders are in no rush to accumulate aggressively.
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Author: Kelvin Murithi
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