As the DeFi space rallies, AAVE is making waves with a notable breakout. After surging past the $130 mark, the DeFi token is now poised for a crucial retest phase. But will this retest lead to a post-retest reversal that catapults AAVE to $150?
AAVE Breakout Rally – A Closer Look
AAVE, with a market cap nearing $2 billion, has recently captured attention as it climbed 9.23% in just 24 hours, trading at $131. This move marks AAVE’s entry into the top gainers list, highlighting a robust resurgence in the altcoin sector.
On the 4-hour chart, AAVE’s price trajectory is indicative of a strong bullish trend, although it has faced minor pullbacks. The token reached a 30-day high of $148 before retreating to the $117 support level—a bounce-back that has demonstrated resilience. AAVE has found solid footing at the 200-period exponential moving average (EMA), a sign of potential for further gains.
However, AAVE is currently facing resistance at the 38.20% Fibonacci level, approximately $137. Despite experiencing a 3.14% decline over the past 12 hours and forming three bearish candles, recent price action suggests a V-shaped rebound that has surpassed the 23.60% level at $129. This rebound hints that the current correction may be a mere retest rather than a full-blown reversal.
Technical Indicators Favor a Bullish Outlook
The MACD momentum indicator reinforces the bullish sentiment, with both the MACD and signal lines crossing into positive territory. Additionally, the 50 and 200 EMAs on the 4-hour chart maintain a bullish trend, despite the recent pullback.
Can AAVE Reach $150?
With AAVE’s impressive 143% return over the past year, the underlying demand for the token is evidently strong. The recent price rejection at lower levels suggests that AAVE could be on the verge of a significant post-retest reversal. If the bullish trend continues, AAVE could potentially target the 38.20% and 50% Fibonacci levels at $137 and $143, respectively.
Also Read: AAVE Surges To $131 – Can The $130 Breakout And Triple Crown Setup Push It To $150 This September?
Conversely, key support levels at $130 and $117 will be critical to watch. These levels may provide a buffer against any bearish reversals, ensuring a safety net for investors.
In summary, as AAVE navigates through its retest phase, the technical indicators and market sentiment suggest that a move towards $150 is within the realm of possibility. As always, investors should stay vigilant and monitor these critical levels as the DeFi token’s journey unfolds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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