LINK and AAVE can correct further before the boom
Chainlink and AAVE are down more than 24% in the past seven days as pressure to take profit builds in the market. Technical patterns suggest further losses before the uptrend resumes.
Important price zone for LINK
Chainlink is down more than 28% over the past week and is currently trading above a major support level.
The Tom DeMark (TD) Sequential Indicator shows a sell-signal on the 3-day chart of LINK on November 12th with a red candle with 9 counters. This bearish pattern predicts a one to four 3-day correction.
The pessimistic outlook appears to be confirmed as LINK falls to the SMA 100 at $ 29 over a three-day period and if this key support persists, a rebound to $ 70 is possible.
However, the loss of this SMA could cause LINK to drop to the 50 (three day) SMA at USD 25, providing investors with a better buying opportunity. The price action suggests that $ 25 could be the maximum point for this decline as it coincides with the support line of a parallel channel that has been forming since May 2018.
Every time LINK falls to this support line, the bearish momentum will dry up and the price will rebound to the middle or resistance line of the channel.
They’re currently at $ 70 and $ 200.
LINK / USD 3-day chart | Source: TradingView
AAVE is preparing for a major change
AAVE seems poised to take a big step.
The 50th largest cryptocurrency by market cap has gone through a ten-month period of consolidation, creating a series of lower highs and higher lows. Such price behavior has resulted in the formation of a symmetrical triangle on the 3-day chart.
The 24% correction came after AAVE was rejected by the triangle’s resistance line. The retracement can continue until the price hits the support line of the pattern at $ 245.
When the DeFi token approaches the top of the triangle, it signals that a major upheaval is imminent.
AAVE / USD 3-day chart | Source: TradingView
A break of the $ 350 resistance can help AAVE rise more than 82% to $ 635, but the bulls must hold the triangle’s support line at $ 245 for this bullish outlook to remain intact. Failure to do so could result in a steeper correction towards $ 168 or even $ 91.
You can see the price of the coin Here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to crypto briefing