Amid a fluctuating cryptocurrency landscape, AAVE has recently shown sparks of hope with its notable price actions. After a significant drawdown, AAVE’s resurgence from a low of $118 has caught traders’ attention, igniting discussions on whether it can firmly establish itself above the $200 mark by the end of September. Here’s a detailed analysis of AAVE’s current trajectory and technical indicators.
Current Price Action
The recent bullish reversal of AAVE has rekindled interest among investors. After a sharp decline of about 17% from $144 to $118, AAVE appears to be regaining its footing, demonstrating resilience as it trends upwards. The emergence of bullish candles during this recovery points towards a potential trend change.
Key Price Levels
- Support Level: AAVE’s immediate support is anchored at $118.
- Resistance Levels:
- Target 1: $155
- Target 2: $183
- Target 3: $207
Technical Indicator Analysis
RSI Insights
The 4-hour Relative Strength Index (RSI) indicates a bullish divergence, suggesting that AAVE’s upward momentum is picking up pace. As the RSI crosses above the midpoint, this strengthens the outlook for continued gains in the near term.
EMA Trends
The Exponential Moving Averages (EMAs) on the 4-hour chart showcase a sideways shift, with the 200 EMA and 50 EMA delineating the bounds of the current consolidation phase. A decisive breakout from either side will be pivotal in determining AAVE’s subsequent movements.
Double Bottom Reversal Pattern
Analyzing the 4-hour chart reveals a double-bottom reversal pattern forming as the price rebounds from $118, providing a solid base for potential price advancement. This bullish reversal is further validated by the formation of a bullish engulfing candle on the daily chart, reflecting a 6.61% jump in the previous session.
Current Price Status
As of now, AAVE is trading at $131.88, registering a modest intraday increase of 0.46%. Despite some struggle to maintain this momentum, the bullish trend seems poised for continuation, barring any significant downturn.
Outlook: Will AAVE Reach $200?
Currently, AAVE is challenging the 23.60% Fibonacci level at $134. Overcoming this resistance would catalyze a rally toward the upper targets within the month of September. The Fibonacci levels serve as vital benchmarks, with further projections indicating ambitious upside targets at $155, $183, and ultimately $207 as key levels to watch.
Conversely, if AAVE fails to maintain its current trajectory and drops below $118, it may test the psychological support at $100, warranting careful observation from traders.
In conclusion, the recent price movements of AAVE suggest a potential for significant growth as it strives to capture the $200 milestone by the end of September. Investors should remain vigilant for the upcoming price actions and key levels that will shape the journey ahead.
