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The aligned setup of double bottom breakout and the AAVE version 3 liquidity mining going live on Avalanche had surged AAVE price by 8% on early Wednesday. The coin price tagged the $200 psychological level, indicating a 26.3% gain from the $157 higher low support. However, the sudden selling pressure has reverted the coin price, displaying a high-wick candle.
Key points:
- The AAVE chart shows a morning star candle in the monthly time frame chart
- The 50-and-100-day DMA presents a bullish crossover
- The intraday trading volume in AAVE/USD is $423 Million, indicating a 109.1% fall.
Source- Tradingview
Over the past three quarters, a descending trendline constantly hammered down the AAVE buyers’ attempt to sustain a genuine uptrend. However, amid the march rally, the coin price gave a massive breakout from this trendline, signaling an upcoming bull run.
The bullish breakout marked a high of $261 on April 1st and immediately reverted to retest the breached resistance. The falling price reached the breached trendline at the $157 mark and formed a double bottom pattern.
Furthermore, The AAVE price rebounded with a bullish breakout from the $180 neckline. The coin price currently trades at the $188 mark, indicating a 22% growth since the retest.
A 108% pump in volume activity suggests rising bullish momentum, encouraging buyers to pierce the overhead resistance of $200. If buyers succeed, the altcoin will surge to the $220 mark, followed by $260.
Alternatively, the $180 fallout could dump the coin price back to $157 support, questioning the credibility of the trendline breakout.
Technical Indicator
The crucial DMAs(20, 50, 100, and 200) present two contradictory setups. The 20 DMA slope moving near the $200 resistance zone interrupts the buyers to obtain a resistance breakout. However, a potential bullish crossover between the 50-and-200 DMA encouraged additional buying for this coin.
A successful retest to the long-coming resistance trendline prevented the MACD indicator line from dropping into bearish territory. These lines are nearing a bullish crossover, bolstering a breakout from the $200 mark.
- Resistance levels: $200 and $250
- Support levels: $180 and $157
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