Fantom Forming Another Lower High, While AAVE Eyes on Breaking Resistance—Here’s What’s Next

The post Fantom Forming Another Lower High, While AAVE Eyes on Breaking Resistance—Here’s What’s Next appeared first on Coinpedia Fintech News

The markets appear to have been more volatile since the start of the month when a massive crash occurred. Although the bulls have significant strength, they fail to hold the tokens above the gains. As a result, bears are extracting profits very frequently, which has heated the crypto space as traders appear to have become uncertain of the upcoming trend. 

Among the top-performing altcoins, Fantom (FTM) has displayed a nice move towards the north. This move may induce a bullish perspective on the token, with an expectation of reclaiming $0.5 with the next bullish move. Unfortunately, the altcoins are about to form another lower high as the strength of the rally has been squashed since the rejection from the levels close to $1. Although the bullish perspective may make some room, the possibility of another 20% pullback haunts the rally. 

The daily chart of the FTM price displays the price trading within a descending parallel channel. The price and the RSI have both failed to rise above the average bands of their respective channels, indicating the mounting bearish pressure on the token. Besides, the DMI, which was bullish, is showing signs of a bearish reversal as +DI is about to undergo a bearish divergence. Therefore, as the current trade setup suggests, the Fantom price may face a rejection but if it manages to reach the resistance of the channel, the bearish narrative may be delayed for a while. 

Aave (AAVE) Price Dispalys Massive Strength

While the FTM price trades within a descending channel, the AAVE price has maintained its trade within a rising parallel channel. After bouncing from the support at $90, the price has maintained a steep ascending trend. The current trade setup suggests the AAVE price is poised to hit the pivotal resistance at $120 anytime from now and activate the upper targets. 

As seen in the above chart, the AAVE price has maintained a constant ascending trend ever since it triggered a recovery after the April crash. The buying volume increased and the possibility of reaching higher targets has increased as RSI has remained within the upper bands. Besides, the MACD has just turned bullish as the selling pressure has faded, indicating a v-shaped recovery to reach the resistance at $120. Moreover, the price has risen over the pivotal resistance zone, and as a result, the price is expected to breach the channel and hit $130 in the coming days.