As the altcoin market surges, the DeFi space is buzzing with renewed vigor. AAVE, a prominent player in the decentralized finance sector, is making headlines with a notable $130 breakout. As it moves through a critical retest phase, all eyes are on whether this could lead to a bullish ascent toward the $150 mark.
AAVE’s Bullish Momentum
Currently boasting a market cap of $1.95 billion, AAVE is inching closer to the $2 billion milestone. Over the past 24 hours, the DeFi token has surged by 9.23%, trading at $131. This impressive performance places AAVE among the top gainers, hinting at a possible bull run as September unfolds.
The 4-hour chart reveals a robust uptrend for AAVE, albeit with a minor pullback. After peaking at $148, the token retreated to the $117 support level, showing resilience with multiple bounces. This support has been bolstered by the 200-period exponential moving average (EMA), reinforcing the token’s potential for future growth.
Despite facing resistance at the 38.20% Fibonacci level around $137, AAVE’s recent price action suggests that the current correction is more of a retest than a full reversal. The token’s price has declined by 3.14% over the past 12 hours, forming a series of bearish candles. However, a V-shaped rebound past the 23.60% level at $129 indicates that the bullish trend might still be intact.
Indicators Point to Bullish Continuation
The MACD momentum indicator is showing a positive trend, with both the MACD and signal lines crossing into positive territory. This supports the ongoing bullish narrative. Additionally, the 50 and 200 EMAs on the 4-hour chart continue to exhibit an upward trajectory, despite the recent pullback.
The demand for AAVE is gaining traction, as evidenced by its impressive 143% return over the past year. This strong performance underscores the strength of the current bull run and suggests that a successful post-retest reversal could drive AAVE toward new highs.
Also Read: Polygon DeFi TVL Hits $891 Million – Uniswap Surges 39.2%, Aave Drops 18.1%
Key Levels to Watch
In the event of a post-retest rebound, the 38.20% and 50% Fibonacci levels at $137 and $143 will be crucial target zones. These levels represent potential resistance points where the price might face challenges. On the downside, the $130 and $117 levels are vital support zones, offering a safety net if the bearish pressure intensifies.
As the DeFi market gains momentum, AAVE’s performance will be closely watched. The ongoing retest phase, combined with bullish indicators, sets the stage for a possible breakout to $150. Whether AAVE can reach this psychological barrier will depend on its ability to navigate these critical levels and maintain its bullish trajectory.
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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