Aave: $146 Could Decide Fate of AAVE’s Price Rally

Aave: Is $146 the make-or-break point for AAVE’s price rally?

Aave’s recent endeavor to surpass the crucial $146 resistance level has been unsuccessful once again, leading to another setback at this significant juncture.

Renowned crypto analyst Rekt Capital emphasized the significance of securing a close above $146 for a bullish breakout, underscoring the significance of a missed weekly closure at this critical level. The persistent inability to conquer this threshold implies that AAVE might not be primed for a lasting surge.

Since the beginning of 2022, the $146 price mark has acted as a substantial obstacle, witnessing several unsuccessful attempts to breach it. The most recent rejection indicates ongoing struggles for buyers, prompting concerns about a potential period of consolidation in the foreseeable future.

Potential Consolidation Range: $111 to $146

After the recent rejection, analysts are anticipating a phase of consolidation for AAVE, projecting a trading range between the $111 support level and the formidable $146 resistance.

This consolidation phase might see AAVE fluctuating within this bracket until a definitive breakthrough either above the resistance or below the support transpires.

Source: X

To confirm a bullish breakout, AAVE must secure a firm close above $146. If achieved, subsequent price targets could reach as high as $180, indicating a rejuvenated bullish momentum.

Conversely, a failure to maintain support at $111 could result in a descent towards the $90 level or lower, signaling further weakness in the market.

Despite the prior setbacks, certain bullish technical patterns are emerging. AAVE’s chart displays an inverse head and shoulders formation, a traditional bullish reversal pattern. Moreover, the price is breaking out from a descending wedge, a pattern typically foreshadowing upward movement.

These positive indicators hint at the possibility of a breakthrough, albeit contingent on surpassing the $146 resistance barrier.

Mixed Momentum in Technical Indicators

While AAVE’s rejection at $146 is disconcerting, technical indicators suggest some bullish momentum. The Relative Strength Index (RSI) is currently at 65.09, indicating a buildup of buying pressure that has not yet reached overbought levels.

This indicates that there is still scope for upward motion if the bulls manage to regain control.

Source: TradingView

Furthermore, the Aroon indicator highlights a robust uptrend, with the Aroon Up line standing at 100%, signifying a prominent upward drive.

Meanwhile, the Aroon Down line sits at 14.29%, indicating minimal selling pressure. These indicators offer optimism to traders eyeing a breakthrough above the resistance level.

At the time of writing, AAVE is trading at $141.56, with a 24-hour trading volume of $327.46 million. The circulating supply amounts to 15 million AAVE, resulting in a market capitalization of $2.11 billion.

While glimpses of a bullish reversal are evident in the market, the pivotal $146 resistance level remains a significant obstacle that must be navigated before AAVE can solidify an enduring uptrend.

Traders are closely monitoring these levels, as breaching the $146 mark could pave the way for a rally towards $180 and beyond.

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