Connect with us
Active Currencies 14386
Market Cap $2,705,500,951,893.60
Bitcoin Share 50.28%
24h Market Cap Change $-1.54

Aave hits 100% extension target – Where would the price go

2min Read
Aave has reached a 100% extension target- now where does the price go?

Share this article

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Aave has been on a Moon mission on the charts since the launch of AAVE V3 in mid-March. The near-term market structure was strongly bullish. The higher timeframes also showed that the breakout past the $200 area was technically important. It appeared likely that Aave would keep this momentum up in the days to come.

AAVE- 1H

Aave has reached a 100% extension target- now where does the price go?

Source: AAVE/USDT on TradingView

In deep blue is a trendline resistance stretching back to August 2021. In the past few days, this nearly eight-month trendline resistance line had finally been broken. It was a bullish development. Since mid-March, AAVE has had a bullish outlook on the charts, and this development further reinforced bullishness.

Fibonacci retracement and extension levels (yellow) were plotted based on AAVE’s move from $158.6 to $210 and showed the 61.8% and 100% extension levels to lie at $241.8 and $261.4. The price has recently been rejected at the $261 level.

$241, $224 and $210 are places where AAVE could end its retracement and continue moving upward once more.

Rationale

Aave has reached a 100% extension target- now where does the price go?

Source: AAVE/USDT on TradingView

The hourly RSI continued to remain above neutral 50 to show that bullish momentum was still present. The Stochastic RSI descended to oversold territory, and taken together they suggested a bounce could occur at the $241 level.

The CMF was well above the +0.05 mark, while the OBV has also been climbing in the past few days. Hence, we can conclude that strong buying pressure was present at press time.

Conclusion

The momentum and volume indicators gave a positive view of bullish price developments for the next few days. A retracement to $224 or $210 can not be ruled out, but at the time of writing, it appeared like the $240 area could see AAVE bounce higher.

Even in the event of a deeper correction toward $200 for AAVE, the higher timeframe charts suggested that bulls were still in control. The move above $150 and $192 was an important event that tips the balance in favor of the bulls and demarcated the $200 area as a demand zone with buying opportunities. To the north, a breakout past $260 will set the next target of $312 (200% extension) for AAVE.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.