AAVE Technical Analysis: Bullish Reversal Teases Wedge Breakout
Table of contents
Key technical points:
Past Performance of AAVE
AAVE prices have been steadily declining within a falling wedge pattern with an extremely bearish resistance trendline. The downfall in price pushed the altcoin towards a low of $48 and accounted for an 80% decline in value within the bearish pattern. But, following a rebound above the psychological threshold of $0.50 and a price jump of 35% increases the bullish breakout likelihood.
Source- Tradingview
AAVE Technical Analysis
AAVE price action forms multiple bullish engulfing candlesticks over the past few days resulting in a bull cycle with a boom in trading volume. Hence, traders can expect the breakout rally to reach the overhead resistance at $100. The downtrend in the falling wedge pattern has been trading lower with the 20 and 10-DMA providing dynamic resistance. But, the recent rise surpasses the 10-DMA resulting in a bullish reversal and teasing a crossover with the 20-DMA.
The daily RSI's slope increases out of the zone that is oversold to overtake the 14-day SMA and reflects a surge in the overall bullishness. Thus, the indicator shows a high likelihood of a price jump to $100. The MACD and signal lines show an end to the bearish trend, leading to a crossover before returning to a bullish alignment. Additionally, the crossover resumes the upward trend of the MACD histograms which indicates a significant increase in buying tension. In a nutshell, the AAVE technical analysis forecasts a bullish breakout trend reaching the psychological resistance mark at $100.
Upcoming Trend
If the buying pressure continues, AAVE prices will avoid a retest and continue to soar above $80. Traders can expect the breakout rally to reach the psychological mark of $100.
Resistance Levels: $80 and $100
Support Levels: $60 and $50