AAVE Technical Analysis: Wedge Breakout Teases A Bull Run
Table of contents
Key technical points:
Past Performance of AAVE
A long-coming downtrend in the AAVE prices forms a falling wedge pattern, accounting for a downfall of 80% in the last three months. The price action takes a bullish approach after reaching the $50 mark resulting in a price jump to $75. However, the sellers at the trendline kept the downtrend in action for a bit longer before the buyers formed a rounding bottom to breach the resistance trendline.
Source- Tradingview
AAVE Technical Analysis
AAVE prices show the bullish breakout of the falling wedge pattern with a 5% growth in the last 24 hours. Today's bullish development forms an engulfing candle increasing the likelihood of the breakout rally reaching the overhead resistance at $80. The MACD indicator shows the fast and slow lines sustaining the uptrend as they approach the zero line. Hence, the uptrend increases the likelihood of increased momentum of the breakout rally.
The RSI indicator shows a rounding reversal in the nearly oversold zone, surpassing the 14-day SMA to reach the halfway line. Hence, the indicator showcases an increase in the underlying bullishness and the possibility of a breakout rally reaching the $80 mark. Therefore, the technical indicators maintain an overall bullish standpoint. In a nutshell, the AAVE price analysis displays a rise in buying pressure fueling the breakout rally.
Upcoming Trend
AAVE buyers can expect the wedge pattern breakout rally to surpass 50-day SMA and reach the next psychological mark of $100.
Resistance Levels: $75 and $100
Support Levels: $55 and $48