Aave’s (AAVE) recent battle at the critical $146 resistance level has ended in yet another rejection, stalling what could have been a bullish breakout. This recurring struggle has been a focal point for traders and analysts alike, with crypto expert Rekt Capital emphasizing the importance of closing above $146 to signal a genuine bullish trend. However, this crucial weekly close has consistently eluded AAVE, suggesting that the token might not yet be primed for a sustained rally.
Since early 2022, the $146 mark has stood as a formidable barrier. Despite numerous attempts, AAVE has failed to secure a decisive close above this level. The latest rejection only underscores the ongoing challenge for buyers, indicating that AAVE could remain range-bound for the foreseeable future.
Consolidation Zone – $111 To $146
Following the recent rejection, analysts predict a potential consolidation phase for AAVE. The token is expected to trade between the $111 support level and the $146 resistance. This range has proven difficult to break, and AAVE might continue to oscillate within these boundaries until a significant move occurs either above resistance or below support.
For AAVE to confirm a bullish breakout, it must secure a close above $146. Achieving this could set the stage for a potential rise to $180, signaling renewed bullish momentum. Conversely, failure to hold the $111 support could trigger a decline towards $90 or lower, reflecting further market weakness.
Bullish Patterns Amidst Rejections
Despite the setbacks, AAVE’s chart reveals some promising technical patterns. An inverse head and shoulders pattern is taking shape, often seen as a bullish reversal setup. Additionally, the price is breaking out from a falling wedge—a pattern typically associated with upward movement. These technical formations suggest that a breakout could be on the horizon, but overcoming the $146 resistance remains crucial.
Mixed Technical Indicators
While AAVE’s rejection at $146 raises concerns, technical indicators offer a mixed view of market momentum. The Relative Strength Index (RSI) is currently at 65.09, indicating building buying pressure without reaching overbought levels. This suggests that there could still be room for upward movement if bullish control is regained.
Moreover, the Aroon indicator reflects a strong uptrend, with the Aroon Up line at 100%, signaling a clear upward push. Meanwhile, the Aroon Down line is at 14.29%, showing minimal selling pressure. These indicators provide some optimism for traders hopeful of a breakout above $146.
Also Read: Aave [AAVE] Surges 32% But Faces Resistance At $146 – Will It Drop To $123?
As of now, AAVE is trading at $141.56, with a 24-hour trading volume of $327.46 million. The token’s circulating supply stands at 15 million, giving it a market capitalization of $2.11 billion. While the market shows signs of potential bullish reversal, the $146 resistance remains a significant hurdle that must be surpassed for AAVE to confirm a sustained upward trend.
Traders are keeping a close eye on these levels. A decisive break above $146 could pave the way for a rally toward $180 and beyond, while failure to break this resistance might result in further consolidation or decline.
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.