AAVE shows potential for breakout with target set at $180 to $200
AAVE (CRYPTO:AAVE), the DeFi platform’s token, is showing signs of a bullish breakout, with analysts predicting a potential price surge toward the $180 to $200 range.
According to the crypto analyst World of Charts, a bullish pennant pattern is forming, suggesting strong upward momentum for AAVE if the pattern plays out successfully.
The analyst, who previously predicted a 24% profit on September 4, now forecasts a possible 20-25% rise if the bullish trend continues.
Technical indicators also support this outlook.
AAVE's chart shows it has surpassed a key resistance level of $130.
The Bollinger Bands are widening, indicating increased market volatility.
The price is trading near the upper band, which could suggest overbought conditions, but the 20-period moving average is providing support, hinting at sustained bullish momentum.
Moreover, the MACD indicator, a tool used to gauge market momentum, reflects a bullish sentiment with the MACD line crossing above the signal line.
However, traders are cautious as the histogram bars are shrinking, which may signal a weakening momentum.
A potential bearish crossover could lead to a short-term trend reversal, so traders are watching closely for any signs of change.
AAVE's recent price surge has been supported by a notable increase in trading volume, reaching $338,983,007 in the last 24 hours, signaling strong buyer interest.
However, a slight tapering in volume has raised concerns that the buying pressure might be fading.
Analysts are monitoring any spikes in volume to determine whether the upward momentum will continue or if a correction is imminent.
The AAVE network has also shown steady growth in user activity.
As of September 2024, approximately 161.95k addresses hold a balance, indicating strong user retention and interest in the protocol.
If AAVE's price pulls back, the $108 support zone is considered crucial for maintaining the bullish trend.
At the time of writing, the Aave (AAVE) price was $137.91.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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