AAVE/USD Supported Over Double Bottom – Sell Stop at $300

Yesterday, the AAVE/USD closed at $308.58, after placing a high of $323.73, and a low of $302.28. AAVE/USD reversed its course on Tuesday, putting a loss for the day, despite  a piece of favorable news that affected its environment.

California-based Investment Manager, Bitwise Investments, has announced an addition of two crypto funds to its pool of services. The $1 billion digital asset manager launched funds for AAVE and Uniswap, citing increased demand from Wall Street-type clients who were looking for more exposure to DeFi’s biggest names.

Moreover, the dip in the prices of the US dollar could also have turned the movement of AAVE/USD to the upside, as the two are negatively correlated. However, the cryptocurrency continued its downward movement and followed the recent depressed sentiment of the market, driven by the continuously declining prices of Bitcoin, which is the leading cryptocurrency in the market, and tends to have an impact on the entire market.

The US Dollar Index, which measures the greenback’s value against a basket of six major currencies, fell to 91.89 on Tuesday, capping the losses in the AAVE/USD.

Taking a look at the chart above, the AAVE/USD coin is looking to break below the $302 support level. If this happens, there will be further room for selling until $292 and $287. Let’s place a sell stop at $300, to capture a move. Good luck!