Two DeFi Coins (AAVE & SNX) That Might Have Begun to Bounce

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In Brief
  • AAVE is following a descending resistance line.

  • There is support at $28.5 and resistance at $45 and $58.

  • SNX has broken out from a descending resistance line.

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The Aave price (AAVE) has initiated a bounce from an important support level but has yet to break out above a descending resistance line.

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The Synthetix Network Token (SNX) has already broken out from a descending resistance line and has begun to move upwards.

Aave (AAVE)

AAVE has been falling since it reached a high of $90.89 on Aug 26, following a descending resistance line in the process.

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On Nov 5, the price reached a low of $24.66, before beginning to move upwards. This caused a deviation below the $28 support area which was reclaimed shortly afterward.

However, the price has yet to break out above the descending resistance line. If it does, the closest resistance levels would be found at $45 and $58, respectively.

AAVE Chart By TradingView

Cryptocurrency trader @Altcoinsherpa  outlined an AAVE chart which shows the price resting at support, which she believes could soon begin to move upwards. The price has already bounced at the support area and would confirm the trend with a breakout above the resistance line.

Source: Twitter

Technical indicators show a growing bullish divergence on both the RSI and the MACD, which indicates that an upward move could soon occur.

However, the RSI is below 50, the MACD is below 0 and the Stochastic Oscillator has not yet made a bullish cross. Until these occur, we can’t confidently state that the trend is bullish.

A breakout from the descending resistance line would likely cause several of these to occur.

AAVE Chart By TradingView

Synthetix Network Token (SNX)

The SNX price has already broken out from a similar descending resistance line that had been in place since the beginning of Sept when the price reached a high of $8.05. After three unsuccessful attempts, the price has finally moved above this line.

If it successfully breaks out from the current resistance area at $3.60, the next one would be found all the way at $4.70.

SNX Chart By TradingView

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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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