From the $65 resistance zone, AAVE prices began a dramatic rise. This week, it is almost up 20%. It may extend gains to the $85 resistance.
- The AAVE market price gained momentum after surpassing the $75 resistance to the US dollar.
- The price trades below $85 as well as the simple moving average of 100 days.
- The daily chart for the AAVE/USD currency pair showed a breakout above the major bearish trendline with resistance at $75 (data source: Kraken).
- It is possible that the pair will continue its rise, and may soon surpass $100 resistance.
The AAVE price starts to rise
AAVE’s price reached support in the $65 area after a slow decline. It formed a strong base just above $65 and then began to rise steadily.
The price moved above the $72/75 resistance levels. The price rose above 23.6% Fib resistance level, which is the level at which the downward movement from $116 swing highs to $65 lows was retraced. The daily AAVE/USD chart showed a breakout above the major bearish trendline with resistance at 75.
The $85 resistance is currently being traded, as well as the simple moving average of 100 days. The price is showing strong signs and outperforming bitcoin, ethereum and other cryptocurrencies.
Source: TradingView.com – AAVEUSD
A resistance area is found near the $85 level. Near the $90 area is where you will find next significant resistance. The 50% Fib Retracement level for the downmove from $116 swing highs to $65 lows is near. A breakout of the upside levels above $95 or $100 could lead to a price surge of over 10%. The price may rise to the $100 mark in the above scenario.
Dips Limited to AAVE
A downward correction could occur if the AAVE price does not rise above $85 and $90. The $80 level is a support area for the downside.
Support is located near the 75 zone. If the 75 level is breached, it could lead to a new decline toward $70. Next major support will be at the $65 level.
Technical indicators
Daily MACD – The MACD for AAVE/USD is slowly losing momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for AAVE/USD is now above the 50 level.
Major Support Levels – $80 and $75.
Major Resistance Levels – $85, $90 and $100.