As a seasoned researcher with years of experience navigating the complexities of the cryptocurrency market, I can confidently say that the AAVE price is poised for a significant breakout. My journey in this field has taught me to never underestimate the resilience of the market, and AAVE’s performance over the past week is a testament to this.
Over the last seven days, the price of AAVE has experienced a robust upward trend, managing to withstand the increased selling pressure in the broader crypto market. Even though Bitcoin‘s value dipped back to around $70,000 on Monday, causing renewed selling pressure among altcoins, AAVE has shown remarkable resilience. At this point, AAVE is just 8% away from reaching a significant surge.
AAVE Price Heading Fast For Crucial Breakout
During July’s market rebound, the price of AAVE experienced a significant increase, rising from $71 to $107.13 – a jump representing a 50% growth. This marked the second major reversal within a three-month period, suggesting increased investor interest during dips and indicating a potential double-bottom pattern. This bullish trend occurs when prices bounce back from almost identical support levels, creating a ‘W’-shaped structure.
Using the Relative Strength Index (RSI), we see that it lends credence to the optimistic outlook by forming higher lows. This pattern suggests an increase in buying pressure from investors at lower price points.
As a crypto investor, I’m keeping an eye on an interesting development: the 50-day Exponential Moving Average (EMA) is about to cross above the 200-day EMA. This crossover typically signals a buy opportunity, according to technical analysis. Moreover, this altcoin is currently trading above its daily EMAs (20, 50, 100, and 200), which is a positive sign for potential growth.
Currently, the value of AAVE is being exchanged at approximately $106.5, representing a daily increase of 1.2%. As a result, the total market capitalization has climbed up to around $1.58 Billion.
As an analyst, I’m observing a potential double bottom pattern developing with AAVE. If this pattern holds, we could see a 8% increase in price, potentially pushing it up towards the next resistance at $114.7. This projected target is calculated by measuring the distance from the support level at the pattern’s bottom to the neckline, and then adding that distance to the point where the price broke out.
Should the initial resistance level transform into a new support, the price surge following the breakout could potentially aim for a 38% increase, reaching approximately $157.
The potential rally may witness in-between resistances at $134 and $153.7.
Contrarily, overcoming the $114.7 resistance could prove challenging. Should Bitcoin’s price persist in facing difficulties within the $70K demand area, it is likely that many prominent altcoins such as AAVE will find it tough to maintain their upward trajectory.
If a shift in direction from $114.7 occurs, it may contradict the bullish argument and lead to a longer period of sideways movement. After this potential reversal, the price of AAVE might drop again towards $71, creating increased demand pressure once more.
Read More
- SOL PREDICTION. SOL cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD COP PREDICTION
- TON PREDICTION. TON cryptocurrency
- USD PHP PREDICTION
- USD ZAR PREDICTION
- ENA PREDICTION. ENA cryptocurrency
- Top gainers and losers
- GLMR PREDICTION. GLMR cryptocurrency
2024-07-31 16:26