• Wed. Dec 2nd, 2020

Two DeFi tokens, AAVE and SNX, may have started to rebound

Byadmin

Nov 22, 2020

IN BRIEF

  • Aave follows a downward line of resistance.
  • There is support at $28.50 and resistance at $45 and $58.
  • SNX has passed a downward resistance line.

Aave (AAVE) has started to rebound from a large support area but has not yet crossed its down resistance line.

The Synthetix Network token has already crossed its down resistance line and started to rise.

Aave (AAVE)

The AAve was falling from its peak of August 26 at $90.89, following a downward line of resistance.

On November 5, the price reached a low of $24.66 before starting to rise. This caused the price to deviate below the $28 support line, which the price regained shortly thereafter.

However, the price has not yet broken through the downside resistance line. If it does, the closest areas of resistance will be at $45 and $58.

Crypt trader Bitcoin Revolution shared an AAVE chart showing that the price is at a support level. According to her, the price could start to rise soon. The price has already bounced back to the support zone and its trend would be confirmed by a move above the resistance line.

Technical indicators show a growing bullish divergence in both the RSI and the MACD. This tells us that an upward movement could soon take place.

That said, the RSI is below 50, the MACD is below zero and the Stochastic Oscillator has not yet generated a bullish cross. As long as this hasn’t changed, we can’t say with certainty that the trend is upwards.

A break above the resistance line would likely allow technical indicators to turn bullish.

Synthetix Network (SNX)

The course of the SNX has already exceeded a similar downward resistance line. This resistance line has been in place since early September, when the price peaked at $8.05. The SNX has already passed a similar resistance line. The price finally exceeded it after four attempts.

If it manages to pass its current resistance line of $3.60, the next resistance line could be $4.70.