By Nathan Ferguson
AAVE has had its price movements inside a long-term resistance level after closing July with bullishness. Meanwhile, it has hovered around that area for the past four days, somewhat uncertain of the upcoming action.
For now, AAVE enthusiasts are in limbo as the alternative token rethinks its next move. Breakouts beyond the present level would see AAVE encountering its immediate resistance beyond the $120 value area. Nevertheless, the current hurdle has remained persistent. Hence, bearish retracements still prevail.
While AAVE has had its price actions around the $100 value area within the past few days, the Money Flow index confirms substantial outflows within the previous two weeks. While writing these lines, the Relative Strength Index stayed inside the neutral zone, and that could show buying momentum absence despite the latest upside. Meanwhile, the outflows don’t highlight faded downside momentum. Assessing some of the on-chain indications could offer more clarity.
Demystifying the Stalemate
July 18 trading sessions saw AAVE’s MVRV ratio peaking at 38.58% before consistent plummets emerged to place it at 14.5% during this publication. That shows new market players have been purchasing around the current area, contributing to MVRV’s fall.
New investors purchasing around the prevailing top might confirm why AAVE price has outshined any selling momentum. However, the question is, will AAVE maintain its upside? The asset’s supply distribution shows that addresses with 100K to 1 million tokens trimmed their holdings substantially during July’s last week.
Meanwhile, addresses with over 1 million tokens have been buying, supporting current prices. That explains the ongoing stalemate between bears and bulls. AAVE’s exchange outflow and inflow level started August with rather usual volumes, though outflows outshined inflows. Massive token outflows shift over the coming few days might push the altcoin out of the current zone.
Moreover, AAVE’s on-chain indexes show whales are supporting current values. That could be a healthy signal for AAVE bulls, though investors should watch for possible events that could fluctuate the market. That might mean evaluating broader market sentiments.
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