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- AAVE is confined inside an ascending channel pattern
- The price is currently sitting at a low of 25% from its ATH
- The volume has increased twofold since the end of March
On examining the daily chart, AAVE has been fluctuating in a tight range and is inside the ascending channel pattern. After smashing an ATH of $583 on Feb 10th, AAVE retraced down to correct and has been stuck inside this continuous bullish pattern ever since.
The price action seems to be following one particular trend where it forms higher lows in the downward channel, causing the price to shoot up in the upward channel. However, the market seems indecisive in terms of AAVE.
Although its movement is restricted inside this steep channel, the price recovery has been quite dramatic because it shot up an impressive 40% after hitting the bottom of the channel. On the upside, the volume has had significant growth since the end of March, demonstrating buyers’ interest in this Defi token.
source-tradingview
AAVE to approach breakout from a massive bull flag
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The price action on the 4-hour chart is a completely different scenario. The price action here has depicted a bull flag which is attached to an enormous flag pole. From a more technical perspective, the price of AAVE needs to sustain above the range of $378 (FIB 0.6) on account of it acting as a major support level where most of the time, the price has bounced to soar higher.
Currently, the price of AAVE is above all key EMAs, where the price is getting relatively close to the 20 EMA. This suggests that the 20 EMA can be a potential resistance for this token in the short term.
RSI is stable in the range of 56, showcasing a no-trend scenario,
MACD witnessed a bearish crossover yesterday and is now at a low of 34.68% from the signal line suggesting no signs of bullishness.
CONCLUSION: AAVE kickstarted this year with a parabolic momentum by skyrocketing by 513% in 4 months. This is because the token has emerged as the crypto market’s top Defi tokens. It wouldn’t be unrealistic to set the next target at $770 (FIB 1.618); despite so many steep fluctuations, AAVE has established a significant support level at $302, where the price has bounced up nearly thrice.
SUPPORT : $302
RESISTANCE : $490 and $583