AAVE Technical Analysis: Seeking Opportunities

• AAVE is forming a double bottom pattern on the daily chart.

Currently, the price of the token is trading close to its 200 EMA (the green colored line). Lately, the token has been on the rise.

AAVE on daily chart

A double bottom pattern is observable on the daily chart. The token has not yet broken out of the double bottom pattern; instead, it is consolidating at the current levels, which is encouraging for the bull move because whenever the price breaks out of the double bottom pattern following a consolidation, the price moves strongly in the upward direction.

MACD – A bullish cross has appeared on the MACD. The MACD’s bullish crossover on the AAVE daily chart indicates a trend in the upward direction. Despite the MACD histograms turning light green, which shows that the bulls are waning, the histograms will turn dark green once more when the price rises, which shows that the bulls have rebounded.

Relative Strength Index (RSI) – The relative strength indicator shows that the RSI curve has crossed the 50-point threshold at 74.77 (RSI). The value of the RSI curve has improved due to the increase in token values. The RSI curve may climb sharply higher if the price rises even more.

Analyst view and Expectations

Although there have been a few breakouts from the current levels since May 2022, these breakouts have not been very successful, and each time one has occurred, the price has moved to a nearby resistance level and then pulled back. As a result, the same thing is visible again. Therefore, the token is only useful for short-term investing.

Price prediction predicts AAVE price to skyrocket to $1,186 by 2030

Aave could trade for an average price of $139.41 in 2023, according to DigitalCoinPrice’s forecast. The token could increase in value to $254.28 in 2025 and $791.80 in 2030.

According to WalletInvestor’s forecast, the value of AAVE would have fallen to $5.27 in one year from 2022. According to the Aave pricing prediction for 2025, it should have reduced to $3 by the start of the year.

Technical Levels

Major resistance -$317.92

Major support -$53.56

Conclusion

For long-term investors, the token does not appear to be a good alternative; as a result, they should refrain from investing in it at this time.

Disclaimer: The views contained in this work, along with any other views expressed, are offered solely for informational reasons and should not be construed as investment advice. When purchasing or trading cryptocurrencies, there is a chance that you could suffer financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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