Key Takeaways
- The descending wedge pattern is nearing completion, suggesting a potential trend reversal.
- RSI is oversold, indicating possible buying pressure.
- A breakout above $200.00 could confirm bullish continuation.
- Critical support at $162.61; failure to hold may lead to further declines.
AAVE Price Analysis
AAVE has been undergoing a prolonged corrective phase, with signs pointing toward a potential bottom formation. The higher time frame chart shows a completed descending wedge structure, often indicative of a trend reversal.
The Elliott Wave analysis suggests an ABCDE correction, with wave E recently bottoming near $162.61—a critical support zone aligned with the 0.786 Fibonacci retracement level.
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Technical Indicators
- RSI: Deeply oversold, signaling potential for a relief rally.
Key Levels:
- Breakout above $200.00 (0.618 Fib) could confirm bullish momentum.
- Targets include $238.74 (0.5 Fib) and $277.33 (0.382 Fib).
- Failure to hold $162.61 may invalidate reversal, leading to declines toward $145.20 or lower.
A sustained breakout above $238.74 would solidify a trend shift, opening the door for higher medium-term price targets.
Short-Term Price Prediction
The 1-hour chart suggests AAVE is in the final stages of a five-wave correction, likely to be followed by a bullish breakout.
- Wave (i) and (ii): Expected to confirm breakout momentum.
- Wave (iii): Strongest confirmation if price holds above $200.
- Minor Pullback: A dip to $162–$165 remains valid within the bullish structure.
Critical Levels
Resistance:
- $200.00 (0.618 Fib)
- $238.74 (0.5 Fib)
- $277.33 (0.382 Fib)
Support:
- $162.61 (recent low)
- $145.20 (0.786 Fib)
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FAQs
1. What confirms a bullish reversal for AAVE?
A breakout above $200.00, supported by RSI momentum, would signal bullish continuation.
2. What happens if AAVE loses $162.61 support?
Failure to hold this level may trigger further declines toward $145.20 or lower.
3. What are the next upside targets after $200?
Key targets include $238.74 and $277.33, contingent on sustained buying pressure.
4. How does RSI influence AAVE’s price action?
Oversold RSI suggests potential buying opportunities, while a rebound above 40 sustains bullish momentum.
5. Is the descending wedge pattern reliable for reversals?
Yes, it often signals exhaustion of downtrends, but confirmation via breakout is essential.
Disclaimer: This content is for informational purposes only and not financial advice. Cryptocurrency investments involve risk; conduct independent research or consult a financial advisor before making decisions.