Shorting AAVE this week might not be a good decision because…

ambcrypto.com:

As a result of the rally in the price of AAVE since the beginning of the trading week, there has been a surge in profit-taking levels for the crypto asset, data from Santiment revealed. 

At press time, exchanging hands at $78.90, the price of the ghost token has increased by 8% since the beginning of the week. This growth in price has led many AAVE holders to go about taking profit as the asset’s ratio of daily on-chain transaction volume in profit to loss has gone up since the week started.

At press time, this was 2.736, data from Santiment showed.

Source: Santiment

Like many other cryptocurrency assets, AAVE shares a statistically significant positive correlation with Bitcoin [BTC]. As such, it is believed that its price might see some more growth if the price of the leading coin stabilizes above the psychological $20,000 price region.

The week so far has been marked by a rally in AAVE’s price. On the daily chart, buying pressure for the crypto asset increased in the past few days.

With increased liquidity pumped into the AAVE market since Monday (3 October), its Relative Strength Index went up to lie at the neutral 50 region as of this writing.

This also caused its Money Flow Index to attempt a cross-over above the center line, and as of 5 October, it touched 53. Although at press time, this rested on the 50 center line. 

Also, the dynamic line (green) of AAVE’s Chaikin Money Flow rose above the center line (red) to a high of 0.04 during the intraday trading session on 5 October. At press time, it was positioned at 0.02.

While these key indicators rallied due to the growing buying pressure since the week started, the increased profit-taking that has accompanied the price rally has caused these indicators to grow flat.

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