Cryptocurrencies displayed optimism on Tuesday as Bitcoin becomes immune to tariffs’ developments.
While altcoins mirrored the enhanced sentiments, Aave stole the show with an over 6% daily uptick.
Coinmarketcap shows AAVE jumped from the opening price of $245 to the resistance at $260 within the past day.
The prevailing bullish trends emerge as enthusiasts brace for US CPI stats on Wednesday.
With no Federal conference until March, the upcoming data will likely set the market tone for February.
The CPI report will likely highlight inflation trends, possibly influencing interest rates decisions.
THE CRYPTO MARKET IS EAGERLY WAITING FOR CPI RELEASE WITH POSITIVE ANTICIPATION ✍️
The crypto market is bracing for the upcoming US Consumer Price Index (CPI) inflation data, which could significantly impact the Federal Reserve’s rate cut plans.
Meanwhile, the recent US job…
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The latest weak US job data triggered debates about Fed rate cuts as the economy demonstrated resilience.
A lower-than-anticipated inflation data might reinforce the rate reduction narrative, boosting cryptocurrency prices.
Meanwhile, markets might respond negatively should the CPI surprise with higher numbers.
Aave’s bullish outlook
AAVE exhibits an optimistic trajectory supported by technical indicators.
The 4H 9-EMA and the 21-EMA’s bullish crossover support trend shifts to bullish.
Also, the altcoin’s price hovers above these moving averages.
That confirms near-term stability and upside continuation.
The Relative Strength Index at 59 reveals more room for AAVE surges before hitting overbought conditions.
The Moving Average Convergence Divergence displays fading selling pressure with weakening red histograms.
Further, the Chaikin Money Flow has jumped from yesterday’s -0.17 to +0.17 at press time.
That signals money entering the Aave ecosystem amidst accumulations.
The Open Interest has increased by 10% to $229.87 million (Coinglass data).
The metric has gradually declined since nearing $500 million in 2024’s final three months.
OI’s plunge matched Aave’s price stability within $214 – $271.
That indicates moderating market activity amid consolidating prices.
Continued bullishness could propel AAVE to $271, beyond which the alt could soar to $300.
Such trends will confirm significant bullishness, supporting potential rallies towards December peaks of $385.
That would mean a nearly 50% value increase from current prices of $260.17.
Chart by Coinmarketcap
However, broad market sentiment remained crucial for AAVE’s performance.
A hawkish outlook from the CPI data might catalyze bearish actions for risk-on assets.
Sudden selling momentum will delay Aave’s anticipated surges.
The alt will likely slide toward the support barrier at $243 – a 7% dip. Losing this foothold might trigger significant declines in Aave prices.
Moreover, AAVE experienced reduced activity from large-scale investors.
Transactions worth over $100K have declined from the February 3 peak of 1,070 to 160 at press time.
Also, sentiments indicate a cautious stance.
AAVE witnessed 142 bears and 137 bulls the previous week, indicating a brief bearish tilt from the existing balance.
That suggests an indecisive market awaiting more cues from price actions and economic developments.
Other top US events that could influence crypto include PPI and jobless claims on Thursday and retail sales data on Friday.
The post Aave price action hinges on US CPI: will resistance hold or break? appeared first on Invezz
