The Aave (AAVE) price has broken out from a descending resistance line that’s been in place since hitting a high on Aug 26.
Despite the breakout, the price was rejected by an important Fib resistance level and is expected to decrease in the short-term.
AAVE Breaks Out from Resistance
The AAVE price has been increasing since it reached a low of $24.66 on Nov 5. The increase has been swift, causing a breakout from a descending resistance line that had been in place for more than two months. On Nov 11, the price reached a high of $72.01, measuring an increase of 193% from the aforementioned Nov 5 low.
However, it seems as AAVE has been rejected by the 0.618 Fib level of the entire downward move at $65 and is in the process of creating a bearish candlestick.
If the price continues to decrease, the closest support area is found at $45.
Despite the rejection, technical indicators in the daily time-frame are bullish. The MACD has been steadily increasing and has nearly crossed into positive territory. The RSI has also been moving up and now is in the overbought territory. Furthermore, the Stochastic oscillator is very close to making a bullish cross.