Double Bottom Pattern May Lead AAVE Price to $200

A bullish breakout from the downtrend carrying trendline suggests a positive switch in traders’ sentiment. Additionally, the AAVE price forming a double bottom pattern to the retest of this breached trendline gives an extra push for a bullish reversal. 

Key points: 

• The AAVE price forms a morning star candle in the weekly time frame chart
• The 50- and 100-day SMAs signal a bullish crossover
• The intraday trading volume in AAVE/USD is $543 Million, indicating a 46% fall.

Source- Tradingview

On March 29th, the AAVE price gave a massive breakout from a long-coming descending trendline, which had reverted several bullish recoveries in the past seven months. However, the breakout rally reached a high of $261 and was turned down immediately.

During April’s 2nd week, the AAVE price witnessed a correction rally and was discounted by 35%. The buyers mounted strong support at the $156 mark and bolstered a bullish set-up of double bottom patterns.

The AAVE price rebounded from the bottom support with an 8% intraday spike and responding to this pattern, the altcoin would climb to the $200 neckline. A 40% hike in volume activity encourages buyers to breach the overhead resistance.

If buyers succeed, the AAVE price will rise 28% higher to $251.

Alternatively, a failed attempt to surpass the $200 resistance would initiate a consolidation phase for AAVE. This consolidation would keep the possibility of bottom support($157) fallout on the cards.

Technical Indicator

SMA- The downsloping 100-and-200-day SMA reflects an overall bear trend, whereas the rising 50-day SMA points to a short-term bullish trend. The recent price jump may soon breach the overhead 50 SMA, providing an extra edge to buyers.

Vortex indicator: the VI- and V+ slope reflects a bullish crossover. This buy signal should attract more buyers to the market. 

• Resistance levels: $200 and $250
• Support levels: $180 and $157

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.