Aave Experiences 30% Increase in 4 Days: Sustaining Rally Above $300 Demands...
Aave Tearin' Up the Market After bullish Breakout!GET IN ON THE ACTION!
Aave, the popular DeFi platform token [AAVE], has been blazing trails after shattering its short-term range formation. Here's the lowdown on Aave's latest uptrend and what's in store for investors.
Fresh Outta Range!In a previous report, we mentioned Aave's gathering bullish momentum. Without wasting time, Aave's value slashed 30% and counting, pushing past the 6th of June's range low.
Now Sitting Pretty at $313, Aave Sets Sights on Higher Ground!As of this instant, AAVE is trading around the $313 mark. But the $320 and $332 levels loom large as formidable resistances for the altcoin. However, a curveball toward the $300 or the erstwhile range high at $280 might just offer a perfect buying opportunity for swing traders.
Can Aave Beat the Odds and Make It Past $300?Aave's meteoric climb from $125 to $399 last November-December paved the way for a series of Fibonacci retracement levels. After reverting all its earlier gains by April, Aave started to edge upward, establishing a bullish market structure break on the 8th of May, which it's been sailing on ever since.
The range formation facilitated Aave to reset its momentum and accumulate liquidity at the extremes of the range. A breakout came on Monday, following a retest of the $240 support. An upswing in Bitcoin [BTC] prices to $110.5k helped AAVE bulls oust their adversaries.
Demand for Aave remains steady, while bullish momentum flourishes, with no signs of a bearish divergence.
Liquidation Levels Galore!The 1-month heatmap reveals the accumulation of liquidation levels near the extremes of the range - $240 and slightly over $280. The latest surge carried AAVE past the $280 magnetic zone with relative ease.
On a closer look, the 3-day heatmap reveals that the upward thrust stumbled briefly at $290, allowing liquidations to build up around the $295-$300 zone. These liquidations were swiftly exhausted, with Aave soaring higher.
Upcoming Magnetic Zones and Potential CorrectionsCurrently, the $320 and $305 serve as immediate magnetic zones for Aave. If the price experiences a correction, a range formation could take place around these levels. A price drop toward the $285 zone, above the former range high, would offer a captivating buying opportunity for forward-thinking traders.
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Disclaimer: The information provided here does not constitute financial, investment, trading, or any other advice and is merely the writer's opinion.
Deep Dive
Fibonacci retracement levels are crowd-favorite tools in technical analysis, aiding traders in identifying potential support and resistance levels. By analyzing Aave's Fibonacci retracement levels, one can predict its potential to surmount $300.
- Fibonacci Retracement Levels: These levels are derived from the Fibonacci sequence and can foreshadow potential support or resistance areas. If AAVE exceeds its immediate resistance levels, the 78.6% Fibonacci retracement level could emerge as an attractive target, potentially placing the token near $338, depending on the swing high and low used for calculations[3].
- Recent Price Action: Over the past few days, AAVE has unleashed impressive energy, successfully breaking through resistance at $311.50. This breakout creates an optimistic outlook for Aave to keep ascending beyond $300 [1][4].
- Support Levels: If a correction ever occurs, Fibonacci retracement levels can also act as support zones. For AAVE, levels such as those around $195 and $180 (50% and 61.8% retracement from a recent swing low to high) could potentially solidify as support, although short-term prospects seem unlikely[5].
Considering these factors, if Aave continues its relentless push and breezes through its immediate resistance levels (such as those at $320 and $332), it may well reach or surpass $300, with targets like $338 or higher becoming increasingly feasible[4].
- The surge in Aave's value has pushed past the 6th of June's range low, setting its sights on higher ground, possibly towards the $320 and $332 levels for altcoins like AAVE.
- A curveball toward the $300 or the erstwhile range high at $280 might present an excellent buying opportunity for swing traders, as these levels could halt Aave's meteoric climb and offer a potential correction.
- Aave has been sailing on a bullish market structure break since the 8th of May, and its demand remains steady, potentially setting the stage for it to pass the $300 mark.
- Analyzing Aave's Fibonacci retracement levels indicates that if AAVE exceeds its immediate resistance levels, it could reach the 78.6% Fibonacci retracement level, potentially placing the token near $338, depending on the swing high and low used for calculations.
