- The Aave price has surged by 38% in a week, showing strength.
- AAVE crypto price has exceeded the key moving averages.
The AAVE price displayed a bullish trend after the breakout and retest. Based on the chart structure, the Aave crypto price has defended the major support level of $80 since November 2023.
The digital asset price has recovered from the demand zone and has extended to the $120 mark. Since March, the AAVE price has been declining, facing resistance from the descending triangle.
Recently, the price has triggered a breakout from the trendline and has risen by 38% after the retest. The trading volume has supported the bullish momentum.
RSI Analysis
The RSI has developed a golden crossover, with the RSI-based moving average indicating a bullish forecast. RSI has rapidly extended to the oversold zone.
Compared with the RSI and the AAVE price chart, the price has been taking support on a horizontal line since March. However, the RSI has defended its last swing low every time.
Is AAVE Looking too Good?
A source on X claimed that the AAVE crypto price looks good for a bullish move. The chart structure displayed strong selling pressure and was squeezed. It has triggered a breakout from the EMA in a 3-D time frame.
Why does $aave look so good? pic.twitter.com/WnwQbmbO9t
— GreighWard (@GreighWard) August 1, 2024
This breakout might invite buyers on a larger scale, which may lead to strong buying pressure.
AAVE Price has Triggered a Breakout from a Descending Triangle; What’s Next?
Aave crypto was traded at $116.15 at press time, which remained neutral in an intraday session. The market capitalization was $1.72 Billion, and the 24-hour trading volume was $326.28 Million.
The chart structure displayed that the price had triggered a breakout from the triangle and witnessed an up move. If the trading volume supports that momentum, the price might keep surging.
Assuming the chart structure attracts investors, a bullish trend for a longer period can be anticipated. Buyers may eye the $200 hurdle during this upsurge.
On the other hand, buyers may panic if the AAVE price fails to continue after the breakout. Assuming the price is below the key moving averages may result in a bearish trend.
Regarding the technical indicators, the AAVE price has advanced the 200-day EMA and displayed a one-sided move.
Will AAVE Price Keep Surging After Breakout?
Due to the recent price surge breakout from the descending triangle, AAVE appears to be in a strong position. Moreover, bullish signals from technical indicators, such as the RSI, support this.
If the trading volume continues to support the current momentum, the price can surge further. Investors may see the $200 hurdle during this potential upsurge.
However, if the price fails to sustain its momentum and falls below the key moving averages, it could result in a bearish trend. This can cause panic among buyers.
Technical Levels
The AAVE price is expected to face resistance from the $130 and $150 levels. The price may take support on the $105 and $80 mark.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Rajat is an MBA graduate specialized in finance who is a motivated self-starter, highly organized, and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. His primary focus is on cryptocurrency price analysis and industry news coverage.