Aave 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
- John Bollinger Sees ‘W’ Bottom Forming in Ethereum and Solana, Not Bitcoin
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
