AAVE, a cryptocurrency, is currently hovering near a critical price point of $70, and it recently faced resistance at this level. Buyers are making efforts to push through the price channel trendline around $70.
The current scenario indicates that AAVE’s price is at a make-or-break zone, close to $70 and the 200-day EMA (Exponential Moving Average). Looking at the price action, it appears that buyers are eager to surpass the 200-day EMA and could potentially reach $100 in the near future. However, for this to happen, bulls need to gather strong momentum to overcome any potential resistance from bears. On the flip side, if sellers gain the upper hand, AAVE’s price may revisit the immediate support level of $60.
Analyzing the chart, it becomes evident that AAVE has moved out of a correction phase and is aiming for the $80 level. Despite the bearish market sentiment, AAVE has managed to maintain momentum and hold the demand zone at $50, which is a positive indicator for the long-term outlook.
A notable development is the formation of a double bottom pattern near the $50 mark, followed by a significant upward bounce that could extend towards $70 and potentially $80. Despite encountering rejection at the 200-day EMA, bulls have managed to preserve their gains, and the price of AAVE is currently near the $68 trendline, situated within the descending channel. Importantly, there hasn’t been a lower low in the price action yet, indicating a robust rebound.
As of the latest data available, AAVE is trading at $66.39, reflecting a 6.94% increase in the same trading session. Trading volume has also seen a 5.89% uptick, reaching $131.97 million, with the AAVE/BTC trading pair at 0.00222 BTC. AAVE’s market cap stands at $979.59 million, and analysts maintain a neutral rating while suggesting a positive growth outlook.
The question on everyone’s mind is whether AAVE can break out of the channel, surpassing the $70 barrier. The answer lies in the technical indicators and price movement.
On the daily charts, AAVE’s price is in close proximity to the 200-day EMA, and buyers seem determined to overcome the immediate obstacles. AAVE is currently trading near the 50% Fibonacci retracement zone and close to the mid Bollinger Band.
The RSI (Relative Strength Index) remains in the vicinity of neutrality but is heading towards the overbought zone, signifying increased buying activity. The MACD (Moving Average Convergence Divergence) indicator displays a bullish crossover and a fresh green bar, indicating buyer interest observed in the previous trading session.
In summary, AAVE’s price is currently within a descending channel but is striving to break through the immediate barrier at $70 near the 200-day EMA. The price action suggests buyer accumulation, indicating the potential for an upward movement towards the $80 level. If the upper trendline of the channel is breached, renewed buying interest could propel AAVE towards the $80 mark.
Technical Levels:
- Support Levels: $65 and $60
- Resistance Levels: $70 and $75
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Investing or trading in cryptocurrencies or stocks carries a risk of financial loss
