As a seasoned researcher with extensive experience in analyzing cryptocurrency markets and trends, I have closely monitored the recent recovery momentum of the crypto market since mid-July. While most major altcoins surged northward following Bitcoin’s rally past $65k, AAVE underperformed and reverted below the $100 floor. However, upon further examination using a shorter time frame, I identified a bull-flag formation in AAVE’s price action.
Starting from mid-July, the cryptocurrency market has displayed strong rebound energy after Bitcoin surged above $65,000. Most significant altcoins capitalized on the optimistic atmosphere to push higher, while AAVE lagged behind and fell below the $100 mark. Nevertheless, a closer examination of a shorter timeframe reveals this dip as a potential bull flag pattern, suggesting an excellent chance to seize the upcoming market upswing.
Bull-Flag Pattern Signals AAVE Price Surge to $114 Amid DeFi Growth
During the early July market upturn, the price of AAVE experienced a correction and formed a base at around $76. This level of horizontal support, which has been present since October 2023, is a significant accumulation point for crypto investors, leading to a surge in value and pushing the coin up by approximately 50% to reach a high of $106.8.
On the 12th of July, the AAVE cryptocurrency surpassed the bearish trendline of its triangular descending pattern, indicating a potential early shift in trend. Nevertheless, the coin’s price swiftly retreated to trade at around $95, while its market capitalization decreased significantly to approximately $1.418 billion.
An examination of the 4-hour chart reveals that the price pullback occurred between two converging trendlines, forming a bull flag pattern. Additionally, the declining trading volume during the downturn suggests fewer traders are eager to open new short positions.
In addition, Champagne Mam’s latest study for IntoTheBlock reveals a remarkable expansion in the DeFi lending market, with Aave leading the charge. The value of loans processed by Aave has surged from $5.5 billion in May to an astounding $8.22 billion as of now.
Based on information from @intotheblock, the dominant player in Decentralized Finance (DeFi) lending has seen significant growth. The total value of loans provided by $AAVE increased from $5.5 billion in May to an impressive $8.22 billion as of now.
Spark, Euler and Radiant Finance are also gaining traction.
— champagne mami (@EkponoAkwaowo) July 23, 2024
The significant increase in usage highlights AAVE‘s crucial position within the Decentralized Finance (DeFi) community and its ability to draw large loan requests. Additionally, the emergence of new platforms such as Spark, Euler, and Radiant Finance encourages advancements and offers users a range of choices for their borrowing requirements.
If the mistake in identifying the flag is rectified, the AAVE price is primed to shatter the resistance trendline, indicating a resurgence in growth. Subsequently, there may be a significant surge towards the projected levels of $114.7 and subsequently $134.
Technical Indicator:
- EMAs: The flat-lined 100D and 200D Exponential Moving Averages hint the mid-to-long-term trend is sideways with sufficient room for higher recovery.
- ADX: The daily ADX (22%) slope’s downward trajectory suggests that the prevailing bearish trend is losing strength.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD COP PREDICTION
- TAO PREDICTION. TAO cryptocurrency
- Ethereum (ETH) Crashes Dramatically, What’s Next? Solana (SOL) Can Still Reach $200, XRP Struggling Before $0.63 Test
- Crypto Market This Week: Bitcoin Conference, Ether ETF, & PCE Inflation In Focus
- USD PHP PREDICTION
- Upbit & Other South Korean Exchanges Suffer With New Crypto Law In Effect
- Profit from the Dip: Hong Kong To Debut Asia’s First Inverse Bitcoin ETF — Here’s When
2024-07-23 18:42