Market Structure Of Aave, Tezos and Polygon!

AAVE ANALYSIS: JULY, 2021

Market Structure:

Aave is an open-source network that enables users to earn interest on deposits and borrow digital assets. Here’s the market structure of Aave.

Aave is trading at $261.78. It is currently near a zone of supply from where it has faced rejections before. The overall trend remains bearish until the coin breaks the level $345.89 and closes above it on the daily time frame.

On the hourly charts, we have seen a 30% rally in one day from $214 to $271. The accumulation that occurred near $221 to $226 levels help sponsor the rally. The coin also gave a liquidity trap before surging sharply. A liquidity trap occurs when the coin gives a false break on a side to entice retailers and gives a move in another direction once many traders are trapped.

aave market structure
Source: tradingview

Market Indicators:

The Relative Strength Index is indicating mild price weakness as it has cooled down from the overbought zone. The RSI stands at 61.61, with a potential to go lower if the coin faces rejection from the supply zone.

The MACD is below the signal line, giving a ‘sell’ call to investors.

The market structure of aave supports bearishness.

market structure aave,
Source: tradingview

Conclusion:

On the breakout and close above $271.71, $284.59 and $315.13 are the targets on the upside.

On facing rejection from $255.89 to $271.42, a new low of $248.03 and $233.99 can be made.

The market structure of Aave suggests bullishness on the hourly time frame.

TEZOS ANALYSIS: JULY, 2021

Market Structure:

Tezos is a smart contract which does not involve mining tezos coins. Here’s the market structure of Tezos.

Tezos is trading at $2.47. The coin has given an excellent 20% rally in a matter of a day. In the process, it has broken a crucial supply zone on the four-hourly charts. This supply zone exists between $2.40 to $2.47. The last major supply that was introduced in the market was at this zone.

Looking at the rally that the coin has just given, few things have been noticed. The coin gave a textbook rally-base-rally. It surged from $2.11 to $2.33, consolidated for a while where an accumulation occurred and then continued its rally towards $2.47.

If the coin sustains about this supply zone, further surge can be seen after a minor retracement. The volumes support this rally indicating some institutional participation at these levels.

market structure tezos
Source: tradingview

Market Indicators:

The Relative Strength Index is indicating extreme price strength as it has surged in correspondence to the charts. The RSI has risen with negligible retracements. It stands at 59.03 and can go higher if the breakout is sustained.

The MACD is also above the signal line, confirming the bullish bias of the coin.

RSI MACD tezos
Source: tradingview

Conclusion:

If the coin sustains above $2.47, $2.72 and $2.94 are the targets on the upside.

If the breakout fails and the coin closes below $2.40, $2.30 and $2.19 are the targets on the downside for Tezos.

POLYGON ANALYSIS: JULY, 2021

Market Structure:

Polygon combines the best features of several blockchains including Ethereum to serve as a multi-chain network. Here’s the market structure of Polygon.

Polygon is trading at $0.906. The coin is highly bullish in the short-term as it has rallied over 50% in three days. However, the overall trend of the coin remains bearish as it has made a series of lower-highs and lower-lows on the daily time frame.

On the lower time frames, the coin has taken out a key supply area in the process of its excellent rally. Now it inches slowly towards the next supply zone, making a symmetrical triangle type formation on the four-hour charts.

On the breakout of this pattern, the coin may move higher if the volumes continue to flow. The current volumes show unprecedented buying in the coin, presumably by institutions.

market structure polygon
Source: tradingview

Market Indicators:

The Relative Strength Index is indicating extreme price strength for the coin as it jumped from the oversold region directly near the overbought region. The RSI stands at 62.22 and it can go higher after the break of consolidation.

The MACD is sustaining above the signal line, confirming the short-term bullish bias of the coin.

RSI MACD polygon
Source: tradingview

Conclusion:

If the coin sustains above $0.92, $0.945 and $1.06 are the targets on the upside.

If the breakout fails and the coin closes below $0.84, $0.79 and $0.726 are the targets on the downside for Polygon.