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- Defense of the $69.3 support level could lead to more gains for bulls.
- The CMF indicator pointed to a significant increase in capital inflows.
AAVE continued to build on its bullish trend in the lower time frames. Despite the pullback caused by Bitcoin [BTC] AAVE dipped below $31k and maintained its bullish gains with a successful defense of the $69.3 support level.
Realistic or not, here is AAVE’s market cap in BTC terms
This kept the altcoin in an uptrend with bulls preparing another approach to the $83.6 resistance level. The current evidence showed that further gains were possible. The indicators pointed to demand behind AAVE, and momentum was also bullish over the four-hour timeframe.
Bulls show buying power to support the uptrend
Source: AAVE/USDT on trade view
A recent pricing report highlighted the remarkable gains AAVE posted at the end of the second quarter that reversed the bearish momentum. While bulls enjoyed the gains that led to capturing the $69.3 support level, the correction in the crypto market between July 5 and July 10 saw AAVE test the new support level twice in quick succession.
However, buying pressure was sufficient for a bullish rally on both occasions. The recent rally from the $69.3 support level resulted in a 10.2% gain for buyers.
The relative strength indicator highlighted strong buying pressure as it moved towards the overbought zone at 65. Significant capital inflows over the past 24 hours caused the Chaikin Money Flow to flip from negative to positive. It stood at +0.20 as of going to press.
The price action and indicator readings showed strong bullish intent. If bulls cross the $80 psychological level hurdle, they could easily flip $83.6 to support. However, if Bitcoin falls even further, bears could take advantage to force a retest of the $69.3 support.
On-chain stats pointed to good profits for buyers
Source: Sentiment
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The Market Value to Realized Value ratio is useful to show the average profit/loss of all coins in circulation, according to the current price of the token. Dates from Sanitation showed a positive MVRV ratio of 12.87%, highlighting the unrealized gains currently held by AAVE buyers.
With supply on exchanges falling significantly, it showed that bulls were willing to push for more short-term gains.