Next Step Will Take It Above $100

Aave (AAVE) price has broken above a descending resistance line, which is likely to lead to a longer term upward move.

AAVE price was trading below a descending resistance line since reaching a high of $115.8 on August 13th. The minimum price on October 13 was $64.7 due to a downside movement.

Initially, it looks like a downside movement has led to a break above the $71 horizontal support area. However, the price quickly reversed the trend, bouncing up and making a long lower wick (green icon) in the process.

Shortly after, the AAVE broke above the price line, indicating that the previous correction has been completed. The breakout and the ensuing upward move led to a high of $90.1 before being rejected on October 23.

The main resistance area is found between $90.50 and $96.60. This is the 0.5-0.618 Fibonacci Retracement resistance and a horizontal resistance area.

It is worth mentioning that the technical indicators support the continuation of the upward move. There was a bullish divergence in the daily RSI (green line) prior to the breakout.

The indicator is now moving further above 50. This is a signal that supports the validity of the breakout and the continuation of the upward move.

AAVE can go above $100 again. Coin of the Week – YouTube

AAVE Price $135 . can reach

Similar to the RSI, the wave count provides a bullish outlook. It shows that the ABC corrective structure (black) is likely to have an AAVE price in wave C. If so, giving Waves A:C a 1:1 ratio would give AAVE a future price forecast of $135.50. The sub-wave count is given in red.

At the present time, it is not certain whether the movement is an ABC formation or a new bullish impulse. However, an increase of at least $135.50 would be expected in both cases.

Conversely, a decline below the wave B low (red line) of $64.70 would invalidate this bullish AAVE price prediction.

What will happen to the avenue once the target is reached?

So far, both technical analysis readings and wave counts from the daily time frame are bullish and support an upward move towards $135.5.

A look at the weekly time frame also gives a bullish outlook.

In June 2022, AAVE price declined below the long-term horizontal support area of ​​$71. It also validated the support line of a long-term descending parallel channel (red circle).

But, soon after reclaiming the area in the process, it reversed the trend. Such divergence after a retest is considered a bullish development and is usually an upward move.

An interesting confluence is that the channel’s resistance line is currently at $135, which is in line with the target given by wave count.

Consequently, a reaction at the $135.50 level will be significant, as a breakout above it would also mean a breakout above the longer-term channel.

For the latest BeInCrypto Bitcoin (BTC) and crypto market analysis, click here

Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but will not be responsible for any missing facts or incorrect information. You comply and understand that you should use this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do the research and make your own financial decisions.


All information contained on our website is published in good faith and for general information purposes only. Any action taken by readers on information found on our website is strictly at their own risk.

Source link

Leave a Comment