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