AAVE has been experiencing a strong rally, extending its gains as a bullish pattern emerges on its chart. The key question for traders and investors now is whether this momentum can carry the price to the significant psychological level of $150.
Bullish Patterns Supporting the Rally
Ascending Triangle Formation: AAVE's recent price action has formed an ascending triangle, a bullish continuation pattern. This occurs when the price creates higher lows while facing a consistent resistance level. The breakout from the triangle typically signals the continuation of an uptrend.
Volume Surge: The rally has been supported by increasing trading volume, which is a positive sign that the market is backing the upward movement. Higher volume during breakouts strengthens the likelihood of sustained upward momentum.
Moving Averages: AAVE's price is currently trading above key moving averages, such as the 50-day and 200-day moving averages. This crossover indicates a bullish trend and can attract more buyers into the market.
Relative Strength Index (RSI): The RSI is trending upwards but has not yet reached overbought territory. This suggests there might still be room for further upside before any potential correction.
Key Levels to Watch
Immediate Resistance: The current resistance level is around $140. A decisive breakout above this could propel AAVE towards the $150 mark, a significant psychological and technical level.
Support Levels: On the downside, the previous resistance level around $120 could now act as a support if thereâs a pullback.
Path to $150
For AAVE to reach $150, it needs to maintain its bullish momentum and break through the immediate resistance levels. The broader market sentiment around cryptocurrencies and continued interest in decentralized finance (DeFi) will also play crucial roles in sustaining the rally.
If the bullish pattern holds and external conditions remain favorable, AAVE could indeed reach $150 in the near term. However, traders should remain cautious of potential volatility and keep an eye on critical support levels to manage risks effectively.
