The price correction of the frantic growth wave, which began in December 2020, has been going on in the AAVE market for almost two months now.
Although sellers showed their presence in the market and stopped the bright growth trend – investors did not see a deep correction. As of 23 February, the AAVE market has cooled and become less volatile. The reason for this was a sharp AAVE price fall by 45% in a few days.
In the previous article, we wrote the probability of the AAVE price correction continuation to the mark of $200. However, buyers managed to withstand a blow in the range of $270-300 and send the AAVE price to trade in a protracted triangle. If we pay attention to the trading volumes starting from February 2021, we see their systematic decline.
Sellers Focus in the range of $490-530
From 3 to 5 February there was the main volume in the AAVE market. And it outlined the global sales zone of $490-530. It is from this range that the AAVE price began its lightning fall. After checking this range for strength on 20 February buyers understood that without much effort they will not be able to continue the growth trend.
Since 23 February, the trading volumes in the AAVE market have significantly fallen along with market volatility. What is it – the beginning of the end or a lull before a new growth wave?
If you look closely at the proportion of the growth wave and the current correction, sellers managed to correct the previous growth by 50%. The last attempt of sellers to break the range of $270-300 was at low volumes. Sellers failed to update the local low on 23 February.
This market situation looks like a complete depletion of sellers before a new growth wave of the AAVE price. Therefore, our main scenario is the beginning of growth in the AAVE market with the first serious target of $490-530. The main problem for buyers on the way to this target will be the mark of $400.
AAVE Buyers Aim $400 Price to Succeed
As we can see in the chart, this mark shows the trend line, which sellers have been keeping since February. Confident breakthrough of this trend line will give rise to strong momentum growth, which can generate the range of $490-530 and update the historical high.
The main condition during this event should be significantly increased trading volumes. It is this fact that will show us that the correction is behind and a new positive trading month awaits us.