AAVE Technical Analysis: Rounding Reversal Preps To Exceed $76
Table of contents
Key technical points:
Past Performance of AAVE
The AAVE prices have been trending lower within a falling wedge pattern in the daily chart resulting in a drop to the psychological mark of $50. However, the recent price jump breaches the resistance trendline and forms a round bottom pattern with the neckline at $76. The rounding bottom pattern accounts for a 26% Jump last week but shows signs of struggling to surpass the $76 neckline.
Source- Tradingview
AAVE Technical Analysis
The higher price rejection in the AAVE daily candle shows an intensified selling pressure at the $76 neckline. However, the lack of support from the trading volume weakens the bearish intent possibility of a bullish breakout significantly. With the starting of a rounding bottom, the MACD indicator shows a bullish trend in the fast and slow lines. Moreover, the rising trend in the bullish histograms signifies an increase in the buying pressure, adding points to the breakout theory.
Joining the bullish side, the RSI indicator shows an increase in the underlying bullishness as the slopes surpass the Halfway line. Hence, the technical indicators support the AAVE price action analysis forecasting a potential price jump to the psychological mark of $100.
Upcoming Trend
If the bullish breakout rally comes into action, the AAVE prices will skyrocket for the next week and potentially surpass the psychological mark of $100. Conversely, the bullish failure will lead to a declining phase in the market value, potentially reaching the $48 mark.
Resistance Levels: $76 and $100
Support Levels:$60 and $50