This bullish trend has also caused an increase in market capitalization and 24-hour trading volume, with the market cap rising to $795.27M and the 24-hour trading volume rising to $77.81M.
Technical analysis shows that the bulls are currently in market control, with indicators such as the Williams alligator, Bollinger Bands, relative strength index (RSI), and moving average convergence divergence (MACD) pointing to a positive trend. The 9-day exponential moving average (EMA) may also cross bullishly above the 20-day EMA line in the coming days, indicating a potential breakout past the resistance level and towards $62.
However, bears have shown signs of a market downtrend on the 4-hour chart, with red candlestick indicators pointing to a short-term bearish market move. It is possible for a positive turnaround if the bulls can maintain their bullish tempo.
Market Volatility Increases as Aave (AAVE) Trend Moves Toward Overbought Region
The Aave (AAVE) market shows increased volatility as the Bollinger Bands expand, with the top band reaching $57.4 and the lower band approaching $52.64. This increase in volatility increases the likelihood of a breakout, especially since the market is also moving toward the overbought region, as indicated by the RSI reading of 48.74.
The 200-day simple moving average for AAVE is $50.86, while the 50-day simple moving average is $55, indicating that the overall market sentiment for the cryptocurrency is still favorable. The signal line of the MACD is also above zero, indicating that bulls have control of the market.
Despite the bearish moves on the 4-hour chart, there is a higher chance that the current bull run will continue, given the price action's movement towards the upper band and the presence of a bullish flag, with the 9-day EMA above the 20-day EMA line. If the 9-day EMA crosses bullishly above the 20-day EMA line, the price of AAVE will likely advance past the resistance level and toward $62.