Recent analysis suggests that Aave is currently displaying a bearish trend, which has historically led to notable declines in its price. A Tom Demark (TD) Sequential signal has emerged within Aave’s daily price chart, indicating a possible reversal point. The TD Sequential is a technical analysis tool used to identify potential trend exhaustion and reversal points by counting consecutive candles of the same color.
This indicator includes two primary phases: the setup and the countdown. During the setup, candles of either color are counted until they reach nine. When this count concludes, it may suggest that the asset has hit a trend peak or trough. If the preceding candles were green, the indicator signals a potential sell, while nine consecutive red candles may suggest an upward reversal.
Aave has recently completed the setup phase of the TD Sequential after a series of nine green candles, perhaps signaling a peak for the cryptocurrency. This signal has emerged following a significant price surge of about 28% over the past week, indicating that Aave has outperformed many other assets in the sector.
Historically, Aave has experienced declines averaging 27% after previous occurrences of this signal. Analysts warn that if past patterns hold true, a similar downturn may follow this latest signal.
On a brighter note, Aave’s network has seen a surge in activity recently. Data indicates that the total number of active addresses has reached its highest level in over a year, suggesting that the recent price increase has garnered substantial interest from investors. Following its rally, Aave’s price has soared past the $134 mark, adding to the growing excitement surrounding the asset.
