Aave price has been on an upward trend since mid-September, rising 38% from $52 to $72. This recovery was characterized by a couple of corrections that have been met by aggressive buying from the bulls.
The recent pullback from $72 to $64 is being fought with AAVE rising as much as 8% over the last two days. At the time of writing, the DeFi token is trading at $67, up 5% on the day, according to data from CoinMarketCap.
Its daily trading volume has jumped to $56 million, a sign that investors’ interest in AAVE is growing. The enhanced activity by the bulls relative to seller momentum from the bears hints at a possible value surge for the altcoin’s price.
As such, several crypto analysts are now bullish on Aave, with X user Pick saying that the AAVE price has formed a bullish flag that is likely to propel to areas above $84.
$AAVE bull flag break out ✅
hadn´t much time to enter a trade yesterday but this looks hot #AAVE https://t.co/V12yO0aQFn pic.twitter.com/XIbp8xFd2b— Pick (@niklas_zamzow) September 29, 2023
Aave Bulls Could Exploit a Double Bottom to $88
The AAVE price action has formed a double bottom on the daily chart as shown below. Buyer congestion around the $50 support level appears to be fueling the recovery since mid-September.
As such, if buying increases from the current level, AAVE would rise higher first returning to $72 and later fighting supplier congestion from the $75 psychological level.
Breaking this barrier would see the bulls push AAVE toward $80. Higher than that, the price will climb toward the optimistic target of the double-bottom pattern around $88. This would constitute a 31% uptick from the current price.
AAVE/USD Daily Chart
Supporting this positive outlook for Aave is the upward-facing Relative Strength Index (RSI). Its position at 58 in the positive region suggested that there were more buyers than sellers in the market. These buyers may buy more on the dip after the latest drawback to $64 and push the price higher.
Note that the latest ascent from $50 saw Aave flip all the major Simple Moving Averages (SMA) into support. These trend-following chart overlay indicators provide dynamic support on the downside. These are areas defined by the 200-day, 100-day And 50-day SMAs at $66, $64 and $59 respectively.
They are robust breathing areas where the buyers can breathe and buy more on the dips before staging another recovery.
Conversely, if the support provided by the 200-day SMA doesn’t hold to the end of the day, it would signal the inability of the buyers to sustain a recovery. AAVE would then drop lower, visiting the 100-day and 50-day SMAs as described above, eventually going back to the bottom of the chart pattern at $48. This would constitute a 27% drop from the current price.
Source: https://www.analyticsinsight.net/aave-price-prediction-aave-turns-bullish-with-5-gains-where-next/