• The market structure of Aave [AAVE] was bearish on the one-hour chart after failing to break out past $81.
• Bitcoin [BTC] has been see-sawing from $28400 to $27300 over the past 24 hours until press time.
• A shorting opportunity could arise upon a retest of the mid-range level near $77.4, but some volatility could be present.
Aave [AAVE] Overview
The market structure of Aave [AAVE] was bearish on the one-hour chart after failing to breakout past $81. Bitcoin [BTC] has see-sawed from $28400 to $27300 over the past 24 hours until press time. In light of major economic news coming up, volatility is likely to be high in the crypto market for the next 48 hours.
A shorting opportunity could arise upon a retest of the mid-range level near $77.4, but some volatility could be present. Risk management should always be a top priority, so setting a stop loss near $79 is recommended in case prices break out above that level and invalidate this idea.
Open Interest and Funding Rate
Over the past two days, Open Interest has declined alongside AAVE’s price drop which indicated that long positions were forced to close but not many short sellers entered yet. The funding rate hovered close to zero but was in positive territory which means buyers had an upper hand while spot CVD was showing constant downtrend over the past week indicating strong selling pressure in play.
Price Prediction 2023-24
It is difficult to predict what will happen with AAVE’s price in 2023 or 2024 as there are too many variables at play and it depends on how well it performs against other altcoins and Bitcoin itself as well as how much traction it gains among investors for its innovative DeFi services like Flash Loans and Liquidity Mining Protocols etc..
Altcoins such as Aave [AAVE] offer lower timeframe trading opportunities due to their volatile nature . With major economic news right around the corner, risk management should be kept at top priority when entering trades based on shorter time frames like H1 sessions or daily charts etc..