As a seasoned researcher with years of experience navigating the volatile world of cryptocurrencies, I find myself intrigued by the resilience shown by AAVE and Curve DAO amidst this week’s market correction. The double bottom pattern on AAVE is particularly noteworthy, as it hints at a bullish reversal that could push the price to around $150 if sustained.
As a seasoned investor with over two decades of experience in the financial markets, I have witnessed countless market cycles and corrections. This week’s correction in the crypto market, particularly Bitcoin, is not surprising to me given the meteoric rise it experienced recently. However, my personal life experiences have taught me that every correction presents an opportunity for growth and learning.
AAVE and Curve DAO Price Shows Reversal Pattern
AAVE Price Emerged From Major Reversal Pattern
As a researcher, I’ve noticed an impressive surge in AAVE’s price over the past fortnight. Despite the broader market’s downturn, AAVE has managed to outperform, with its value climbing from $85.75 to $116.50. This bullish turnaround has generated a substantial return of approximately 35.8%.
On August 1st, the price of AAVE surpassed the $110 barrier, which was previously acting as a resistance in its double bottom formation. This double bottom pattern, characterized by two consecutive low points around the same price level, could indicate an upcoming bullish trend.
Right now, AAVE is being bought and sold at approximately $115, giving it a total market value of about $1.72 billion. Today’s 5% rise indicates that this asset might continue its upward momentum following a breakout. The current pattern in its price movements hints at a potential growth of up to 35%, which could push the price up towards $150.
Significantly, the ongoing recovery of Aave is reinforced by conventional on-chain indicators showcasing network expansion. Over the last fortnight, the count of active addresses has soared from 583 to 1,140, while new addresses have jumped from 144 to 300. Moreover, the number of zero-balance addresses has risen from 154 to 387. This substantial growth in these metrics points towards a burgeoning user base and heightened network activity, which are both encouraging signs of Aave’s robustness moving forward.
In my perspective as a crypto investor, if the value drops below $110 and ends the day with a bearish candle, it would contradict the bullish outlook. This sudden drop might trigger increased selling, thereby intensifying the downward pressure on AAVE’s price, potentially pushing it back towards the $71 support level.
Curve DAO Price Escapes Seven-Week Consolidation
For approximately seven weeks now, the Curve DAO token (CRV) has been moving along a horizontal path within a symmetrical triangle formation. This triangle shape is created by two lines that are gradually coming closer together, suggesting a brief pause in trading activity as traders gather strength to continue driving the market momentum forward.
Although the overall market trend seems to favor a bearish outlook, the price of CRV broke through the triangle’s upper limit on August 1st, suggesting a change in momentum direction. At present, the CRV token is trading at $0.28 and appears to be maintaining this level, hinting at a potential upward surge with long-tailed rejections.
If the consistent buying continues, the Curve DAO token price might reach the top of the triangle at around $0.367, implying a possible 30% increase. However, looking at larger time periods shows a falling wedge pattern that’s been active since January 2022. The two declining trend lines suggest that the current downtrend is approaching its end.
With the current wedge pattern influencing it, Carbon Recycling Ventures (CRV) might reach a potential peak of around $0.6. If all goes as expected, this level could act as resistance for further price movement.
Additionally, the open interest for Curve DAO futures has risen significantly from $66.7 million to $94.8 million over the past week, representing a 42% jump. This substantial increase often suggests heightened trader interest and could potentially lead to a more powerful price surge.
If the wider market forces CRV to return within the triangle and triggers a sell-off, the sellers might gain more control. A possible breakout could cause the asset to drop by approximately 22%, with potential support found around $0.21.
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2024-08-03 17:26