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Highlights
- The AAVE price reveals a double bottom pattern on the daily chart, with the key resistance level at $114.7.
- The 50-and-200-day EMAs are on the verge of a golden crossover, which could accelerate the altcoin's bullish momentum.
- If supply pressure at the $114.7 neckline persists, the sellers could counter-attack and plunge the altcoin back to $71.
The AAVE price has sustained a strong rally over the past week, resisting the broader market’s supply pressures. Despite Bitcoin’s price pullback from $70,000 on Monday, which reintroduced supply pressure across the altcoin market, AAVE has remained resilient. The asset is only an 8% increase away from achieving a breakout.
Also Read: Mt. Gox Transfers 45,511 Bitcoins to Repay Creditors, BTC Selloff Looms
AAVE Price Heading Fast For Crucial Breakout
Amid the July market recovery, the AAVE price showcased a notable upswing from $71 to $107.13, registering a 50% growth. This second major reversal from $71 within three months highlighted investors’ interest at dips and revealed a double-bottom pattern. This bullish pattern forms when prices rebound from nearly the same support level, developing a ‘W’- like structure.
The momentum indicator Relative Strength Index (RSI) supports the bullish narrative with a higher low formation, indicating rising demand pressure at the bottom.
In addition, the 50-day Exponential Moving Average (EMA) on the verge of crossing above the 200-day EMA would project a buy signal. The altcoin is trading above daily EMAs (20, 50, 100, and 200), indicate
Today, the AAVE price trades at $106.5 with an intraday gain of 1.2%. Consecutively, the market cap jumped to $1.58 Billion.
Under the influence of a double bottom, the AAVE price could rise 8% to challenge the next resistance of $114.7. The potential target for a double bottom pattern is determined by measuring the distance between the support level at the bottom and the neckline. This distance is then added to the breakout point to estimate the distance for the upcoming rally.
If the buyers flip this resistance into potential support, the post-breakout rally may target a 38% rally to $157.
The potential rally may witness in-between resistances at $134 and $153.7.
On the contrary, the $114.7 resistance will be tough to surpass. If Bitcoin’s price continues to struggle at the $70K supply zone, the majority of major altcoins, including AAVE, will stall their recovery momentum.
A possible reversal from $114.7 will invalidate the bullish thesis and a prolonged consolidation. The post-reversal fall could have plunged the AAVE price back to $71 to renewed demand pressure.
Frequently Asked Questions (FAQs)
1. Can AAVE price hold above $100 amid market support pressure?
2. What does a golden crossover indicate in market analysis?
3. Which are the immediate support and resistance for AAVE?
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