Featured image from Dall-E, IntoTheBlock.com, charts from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"
An analyst has pointed out how Aave is currently forming a bearish pattern that led to significant drawdowns the last four times it occurred. Aave Is Showing A TD Sequential Sell Signal Right Now In a new post on X, analyst Ali Martinez has discussed about a Tom Demark (TD) Sequential signal that has taken shape in AAVE’s 1-day price chart recently. The “TD Sequential” here refers to a popular technical analysis (TA) indicator that’s generally used for locating probable points of reversal in any asset’s price. This indicator has two phases: the setup and the countdown. In the first of these, candles of the same polarity (that is, whether red or green) are counted up to nine. When these nine candles are in, the asset may be considered to have reached a point of trend exhaustion. Related Reading: Bitcoin Investors Be Warned: Legendary MVRV Ratio About To Death Cross Naturally, if the candles leading up to the setup’s completion had been green, then the TD Sequential would give a sell signal. Similarly, nine red candles would suggest a potential turnaround towards the upside. The second phase, the countdown, begins as soon as the setup is finished. This phase works much like the first one, except for the fact that candles are counted until thirteen here, not nine. Once these thirteen candles are also in, the price could be assumed to have arrived at another likely top or bottom. Aave has recently finished the first of these TD Sequential phases recently, as the chart shared by the analyst showcases. As is visible in the graph, Aave has finished a TD Sequential setup with nine green candles recently, meaning that the coin could have reached a potential top, at least from the perspective of the indicator. This TD Sequential signal has emerged for the cryptocurrency after its price has significantly outperformed the rest of the sector, showing a sharp rally of around 28% over the past week. In the chart, Martinez has also highlighted the previous four instances of the asset forming this signal. Clearly, the coin’s price went on to register a drawdown following each of these. More specifically, AAVE saw a drop of 27% on average after these signals appeared. Given this past pattern, it’s possible that Aave could end up seeing another similar decline this time as well. Related Reading: Bitcoin Resistance: Here Are The Challenges Ahead For BTC In a more positive development, Aave has seen a burst of activity on its network recently, as data from the market intelligence platform IntoTheBlock has indicated. It would appear that the price surge has attracted a large amount of attention to the asset as the total number of active addresses has reached its highest point in over a year. AAVE Price Following its impressive rally, Aave has broken beyond the $134 mark. Featured image from Dall-E, IntoTheBlock.com, charts from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":637183,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83416],"tags":[79511,92941,92939,92940,83395],"class_list":["post-637102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aave","tag-aave","tag-aave-bearish","tag-aave-sell-signal","tag-aave-td-sequential","tag-aaveusd"],"acf":[],"yoast_head":"\n
Aave Forms Sell Signal That Led To 27% Average Correction Last 4 Times<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n