Get €3000Aave Price Analysis: Reversal From Support Trendline Hints 18% Jump
For more than two months, the AAVE price has been lowering under the influence of a falling wedge pattern. On June 19th, the altcoin rebounded from the combined support of $50 and support trendline, triggering a new bull cycle within the pattern. Can the upcoming bull run breach the overhead resistance trendline?
Key points:
- The AAVE price has gained 22.5% in just two days.
- Falling wedge pattern breakout may surge AAVE price to $260.
- The intraday trading volume in AAVE/USD is $213 Million, indicating a 15% gain.
Source- Tradingview
The AAVE/USDT technical chart showcase a support trendline restricting excessive selling from traders since mid-dec 2021. However, on the flip side, the chart also displays a downsloping resistance trendline that carried the recent April-May downfall.
The price action wobbling within these two trendlines indicates the formation of a falling wedge pattern. In addition, the AAVE price gradually narrowing inside this bullish reversal pattern can soon offer a breakout trade.
Furthermore, amid the June second-week sell-off, the AAVE price slumped to the bottom trendline to replenish the bullish momentum. Today, the altcoin is up 12% and rebounded from the support trendline with a morning star candle.
The sustained buying may drive the AAVE price 18% higher to rechallenge the overhead trendline. Moreover, under a strong bullish scenario, the altcoin could breach the overhead trendline and offer coin holders a 271% growth opportunity.
Anyhow, until the buyers don’t surpass the resistance trendline, the coin price will continue its downward spiral.
Technical indicator
A bullish divergence in the MACD indicator despite a falling price increases breakout possibility from the wedge pattern. The fast and slow lines nearing a positive crossover bolster the current reversal.
The traditional pivot levels aligned with some chart levels increase their weightage as support or resistance. These levels are $16.2 paired with the S2 pivot level, $70-65 paired with S1, and $115 paired with the pivot(P).
- Resistance levels: $70 and $115
- Support levels: $49.8 and $27.4
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