Aave has been gaining traction for some days as it printed a new high in two months. It appeared to be changing the trend following a notable surge above a multi-month resistance line. More gains lie ahead!
Going back to the second quarter of 2022, when Aave witnessed a heavy crash to $45, the price recovered significantly for two months and later began to make a series of lower highs as the bears continued to show commitment.
During that period, it managed to hold the $50 level as support as selling pressure slowly dropped. Last month, the price recovered and advanced towards a crucial resistance line. It saw a rejection and initiated a drop earlier this month.
Aave corrected lower and found support above $60. It initiated a buy from there last Thursday and surged consistently to a daily high of $86.3.
Now that the price has broken out of the crucial resistance line that suppressed buying pressure for 15 months, we can expect more positive actions to take place in the upcoming weeks. But before then, it is likely to retest the broken resistance as support before resuming buying at full speed.
Whichever way it goes, it is essential to say that Aave’s trend is currently bullish on the daily chart. A further push above $100 should greenlight a buy for mid-term gains. The price is up by 10% at the time of writing.
Aave’s Key Levels To Watch
The latest surge in volatility has been paused under the $88 resistance level. If Aave manages to flip through in the upcoming hours, its next buying target would be $95.5 and $100.
If the current test level serves as a pullback point for the breakout, the closest area for support would be $80 and $72.8, followed by a lower level at $67.3.
Key Resistance Levels: $88, $95.5, $100
Key Support Levels: $80, $72.8, $67.3
- Spot Price: $83.3
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.