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Following the recent $130 breakout, the triple crow setup marks a retest phase for AAVE. Will a post-retest reversal reach $150?
As the altcoins market gains momentum, the DeFi space is back in action. With AAVE entering the top gainers list, a breakout rally teases a bull run in September.
Will this bull run reach the $150 psychological barrier in September?
AAVE Breakout Rally
With a market cap of $1.95 billion, AAVE is on the verge of hitting the $2 billion mark. The DeFi token has increased by 9.23% in the past 24 hours and is currently trading at $131.
On the 4-hour chart, Aave’s price action exhibits a robust uptrend, punctuated by a minor pullback. After reaching a 30-day peak of $148, the AAVE token later retreated to the $117 support level, where it bounced back multiple times.
Notably, it has also found support at the 200-period exponential moving average (EMA) on the 4-hour chart, suggesting a strong foundation for potential future growth.
According to trend-based Fibonacci levels, the AAVE token is facing resistance at the 38.20% level, approximately $137, struggling to break above it. Over the past 12 hours, the DeFi token has experienced a 3.14% decline, forming three consecutive bearish candles.
However, the recent V-shaped rebound, which successfully surpassed the 23.60% level at $129, suggests that the current correction is more of a retest phase rather than a reversal.
The MACD momentum indicator is displaying a positive trend, with both the MACD and signal lines crossing into positive territory, lending credence to the ongoing bullish trend.
Moreover, the 50 and 200 EMAs in the 4-hour chart continue to exhibit a bullish trend, maintaining a sideways trajectory despite the recent pullback.
Chances of a Successful Post-retest Reversal AAVE
The underlying demand for AAVE is gaining momentum, with key indicators in the 4-hour chart aligning to support the DeFi token’s upward trajectory. Notably, the token’s impressive 143% return over the past year underscores the strength of the ongoing bull run.
Against this bullish backdrop, the recent price rejection at lower levels suggests a potential post-retest reversal, setting the stage for a resumption of the uptrend. In this scenario, the 38.20% and 50% Fibonacci levels at $137 and $143 emerge as critical target zones.
On the downside, the $130 and $117 levels serve as crucial support zones, providing a potential safety net in the event of a bearish reversal.