dailyhodl.com
A popular crypto strategist thinks an altcoin in the decentralized finance (DeFi) space looks strong against the US dollar and Bitcoin ($BTC).
Pseudonymous analyst Bluntz tells his 308,500 followers on the social media platform X that DeFi lending platform Aave ($AAVE) is flashing multiple bullish signs on the eight-hour chart.
“$AAVE [is] one of my favorite looking alts here, clear ABC down on the eight-hour chart, clear five waves within the C wave AND a cracking eight-hour bullish divergence brewing.
T1 (tier-one) setup in my opinion.”
Bluntz follows the Elliott Wave theory, which states that a bullish asset tends to witness a five-wave surge after completing an ABC correction. Based on the trader’s chart, he seems to suggest that $AAVE has completed the ABC retracement with a bullish divergence to support his stance on a potential reversal.
A bullish divergence is typically viewed as a reversal signal as it indicates that an asset’s momentum is rising even though its price is dropping or trading sideways.
Bluntz seems to predict that $AAVE will soar as high as $460 for the next leg up, a potential upside of about 56%.
Looking at $AAVE/$BTC, Bluntz says the pair is also flashing a similar setup, suggesting that the coin is gearing up to outperform Bitcoin.
“$AAVE/$BTC also looks identical, with a nice high time frame eight-hour bullish divergence.”
At time of writing, $AAVE/$BTC is trading for 0.003034 $BTC worth $294.71.
Generated Image: Midjourney