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Despite recent volatility in the crypto market, the AAVE price continues to follow the falling wedge pattern. However, the altcoin is quite near the peak of this bullish pattern, indicating that the prices will soon offer a breakout opportunity. Thus, the trendline breakout will hint that the prior sentiment of selling on rallies has been shifted to buying on dips.
Key points:
- The wedge pattern breakout will set AAVE price recovery for a 55% rise.
- An evident bullish divergence in daily RSI slope bolsters the pattern completion
- The intraday trading volume in AAVE is $134.3 Million, indicating a 15% gain
Source- Tradingview
The AAVE technical chart shows a textbook example of a falling wedge pattern. The altcoin has been falling within two converging trendlines over the past two months and has registered a 38.8% loss from the $116 swing high.
In theory, even though this pattern leads prices in a downward correction, the coin price eventually witnessed a strong surge in inflow upon the breakout of the resistance trendline. Amid the uncertain market sentiment, the AAVE price spread has narrowed enough to be considered a no-trading zone.
Today, the altcoin showcased a 3% jump and currently trades at the $74.1% mark, the strong bullish retest of the overhead trendline with breakout intention. A potential breakout from this trendline will signal that the coin buyers are ready to wrest trend control.
A long entry opportunity will offer a potential upswing to the $116 mark if the price sustains the trendline breakout.
However, until the prices remain within this pattern, the coin holders could witness a longer downfall.
Technical indicator
Relative Strength Index: Contrary to the falling price, the daily-RSI slope rising higher bolsters the bullish theory. Moreover, a possible jump above the midline of 50% will accelerate the potential recovery.
EMAs: the downsloping EMAs accentuate a well-established downtrend in AAVE price. Moreover, these EMAs will act as additional barriers against buyers for possible recovery.
AAVE coin intraday price levels
- Spot price: $74
- Trend: Bullish
- Volatility: Medium
- Resistance: $74.4, $94.4
- Support levels: $70.5 and $63.4
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bullish-rsi-divergence-hints-at-upcoming-recovery-in-aave-price/