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Aave had a lack of purchasing volume, and sellers were in control, working hard to drive rates below the $360 floor. Chainlink experienced a bearish divergence between price and momentum, forcing it to pull down to $29 and perhaps below. Synthetix can revisit the $18.5 area of demand.
On the 4-hour chart, a bearish divergence (white) has appeared over the last few days as the market has formed higher highs while the momentum indicator (RSI) has formed lower highs. As a result, Connect has retreated to the $29 band.
In recent weeks, the $29-$29.4 range has acted as a supply and demand zone. If the price of Connection slips below $29, the next level of support is at $28.28. The RSI dropped below neutral 50 and retested the line as opposition, indicating that bearish momentum remained in play.
There was a descending triangle pattern (orange) shaped. AAVE was strongly denied at $390, forcing it lower to test $360 as support. The triangle pattern will shift in any direction, but it typically follows the trend that occurred prior to the pattern’s creation. A continuation of this situation will see AAVE rise to $344.
The $360 level has kept as support, but it could be breached in the coming days. The OBV showed a consistent downward slope, and this sale volume could allow AAVE to smash through $360 and $344 to test $300 as support.
The $18.5-$19 range represents a market region, and $17.7 represents a degree of funding. These have always been critical areas of focus for SNX and will continue to be so in the future.
Demand pushed the price up from $18.5 to $21.1 in the last few days, but SNX was unable to recover the $20 level of resistance. Selling pressure caused SNX to retrace much of its losses, and it was once again trading below the $19.7 level of resistance.
The EMA Ribbon was on the brink of turning bullish had SNX managed to hold above $20 for a longer period of time, but the swift drop revealed a very close ribbon—indicative of indecision. The MACD shaped and started to sink towards the zero line. Help rate to watch are $18.5 and $17.7.