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AAVE Price Analysis: Token breaks out of the consolidation zone, what’s next?

Analytics

www.thecoinrepublic.com 03 February 2023 18:56, UTC
  
Reading time: ~3 m

  • The token is trading above 50 EMA and 200 EMA on the daily chart.
  • AAVE token has shown bullish actions in the previous sessions.

The bulls are in action and driving up the price of the token. With strong bullish momentum, the AAVE token has gained more than 50% in the past few weeks. AAVE is the Aave platform’s native token. The platform’s cryptocurrency, this ERC-20 token is primarily utilized as a governance token.

AAVE token on the daily chart


Source: TradingView

The token has risen aggressively without retracement and has broken above the long term trendline. According to the daily chart, AAVE token is currently trading at $90, up 2.02% in the last 24 hours. The token has crossed and sustained above its key Moving Averages of 50 and 200 EMA ( Red line is 50 EMA and the blue line is 200 EMA). After breaking above the trend line, the token is currently consolidating.

Relative Strength Index: The asset’s RSI curve is currently trading at 63.54, and its value is rising as the token breaks out of the consolidation zone. The RSI fell due to the consolidation above the trend line, but things are back on track now. If the bulls can continue their bullish momentum following the breakout, the RSI will rise and cross the 14 SMA upward, indicating bullishness.

Analyst view & Expectations

The token has entered an uptrend, since its value is rising and the bears are not holding back the bulls. The upward trend is likely to continue in the near future. Investors who want to buy now can do so because the token is in an uptrend, while those who want to trade safely can wait for the token to break above $96 to get more confirmation on the trend’s direction. Intraday traders, on the other hand, have a good opportunity to go long and book profits based on their risk to reward ratio.

According to our current Aave price prediction, the value of Aave is expected to climb by 6.14% in the next days, reaching $ 97.49. Our technical indicators indicate that the current sentiment is bullish, with the Fear & Greed Index reading 60. (Greed). Over the previous 30 days, Aave had 21/30 (70%) green days and 16.41% price volatility. According to our Aave prediction, now is a good time to buy Aave.

Technical Levels

Major support: $80

Major resistance: $96

Conclusion

The token has shown strong signs of bullish momentum in the past few weeks with bulls driving up the price of the token and forming a bullish chart pattern. Investors who want to buy now can do so.

Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.


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