Published 6 hours ago
For more than two months, the AAVE price has been lowering under the influence of a falling wedge pattern. On June 19th, the altcoin rebounded from the combined support of $50 and support trendline, triggering a new bull cycle within the pattern. Can the upcoming bull run breach the overhead resistance trendline?
Key points:
- The AAVE price has gained 22.5% in just two days.
- Falling wedge pattern breakout may surge AAVE price to $260.
- The intraday trading volume in AAVE/USD is $213 Million, indicating a 15% gain.
Source- Tradingview
The AAVE/USDT technical chart showcase a support trendline restricting excessive selling from traders since mid-dec 2021. However, on the flip side, the chart also displays a downsloping resistance trendline that carried the recent April-May downfall.
The price action wobbling within these two trendlines indicates the formation of a falling wedge pattern. In addition, the AAVE price gradually narrowing inside this bullish reversal pattern can soon offer a breakout trade.
Furthermore, amid the June second-week sell-off, the AAVE price slumped to the bottom trendline to replenish the bullish momentum. Today, the altcoin is up 12% and rebounded from the support trendline with a morning star candle.
The sustained buying may drive the AAVE price 18% higher to rechallenge the overhead trendline. Moreover, under a strong bullish scenario, the altcoin could breach the overhead trendline and offer coin holders a 271% growth opportunity.
Anyhow, until the buyers don’t surpass the resistance trendline, the coin price will continue its downward spiral.
Technical indicator
A bullish divergence in the MACD indicator despite a falling price increases breakout possibility from the wedge pattern. The fast and slow lines nearing a positive crossover bolster the current reversal.
The traditional pivot levels aligned with some chart levels increase their weightage as support or resistance. These levels are $16.2 paired with the S2 pivot level, $70-65 paired with S1, and $115 paired with the pivot(P).
- Resistance levels: $70 and $115
- Support levels: $49.8 and $27.4
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/aave-price-analysis-reversal-from-support-trendline-hints-18-jump/