As of press time, Aave (AAVE) is making waves in the cryptocurrency market, achieving a notable 6.63% rise in the past 24 hours. This surge comes despite a week marked by inconsistent performance, signaling a potential shift in momentum that could pave the way for a significant rally.
Key Resistance Level- $153.72
Currently, AAVE is vying to break through a critical resistance level at $153.72. This price point has proven to be a formidable barrier in the past, having repelled attempts to surge higher on three previous occasions. However, analysts are optimistic that AAVE’s current momentum could finally allow it to breach this resistance. If successful, the next target on the horizon would be $236.45, where a substantial liquidity cluster awaits.
In the immediate term, traders are eyeing $162.60 as a nearer target, a level identified by Hyblock as having nearby resting liquidity. This price point could serve as a springboard for further gains, but if AAVE fails to attract sufficient buying interest, it may retrace to $113.50, a notable liquidity concentration that could challenge its upward trajectory.
Profitability Fuels Buying Pressure
Data from IntoTheBlock reveals that a significant portion of AAVE holders are currently “In the Money,” with approximately 71.04% of addresses profitable. This suggests that many investors are likely to maintain their positions, potentially driving prices higher. Furthermore, a 46.48% reduction in active addresses indicates that fewer holders are eager to sell, opting instead to hold their assets.
This trend is further supported by a decrease in AAVE’s circulating supply on exchanges over the last 24 hours, reflecting a strong holding pattern among investors. With a 12.84% growth over the past month, AAVE’s upward trajectory appears promising, but it is met with a crucial test ahead.
Market analysis from AMBCrypto suggests that AAVE is forming an ascending triangle, a pattern often associated with bullish outcomes. If AAVE can successfully break through the resistance at $153.72, it may replicate its previous movements, potentially reaching the $236.45 target. The chart patterns indicate that this breakout could be significant, suggesting a surge reminiscent of past rallies.
Conversely, should the price action falter, a breakdown of the ascending channel could lead to a decline towards $116, closely aligned with the $113.50 liquidation point highlighted in Hyblock’s liquidation charts. This scenario underscores the importance of the current resistance level and the market’s ability to push past it.
What’s Next for AAVE?
As AAVE prepares for another attempt to breach the $153.72 resistance, all eyes are on the market’s response. With a strong base of profitable traders and a holding pattern that indicates bullish sentiment, AAVE could be on the cusp of a significant rally. However, traders should remain cautious, keeping an eye on key support levels and market dynamics that could influence AAVE’s trajectory.
In summary, AAVE’s potential breakout could mark a pivotal moment for the altcoin, but navigating the waters of resistance and support will be crucial in determining its next move. Will AAVE soar to new heights, or will it face another setback? Only time will tell.
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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