A bullish breakout from the downtrend carrying trendline suggests a positive switch in traders’ sentiment. Additionally, the AAVE price forming a double bottom pattern to the retest of this breached trendline gives an extra push for a bullish reversal.
Key points:
- The AAVE price forms a morning star candle in the weekly time frame chart
- The 50- and 100-day SMAs signal a bullish crossover
- The intraday trading volume in AAVE/USD is $543 Million, indicating a 46% fall.
Source- Tradingview
On March 29th, the AAVE price gave a massive breakout from a long-coming descending trendline, which had reverted several bullish recoveries in the past seven months. However, the breakout rally reached a high of $261 and was turned down immediately.
During April’s 2nd week, the AAVE price witnessed a correction rally and was discounted by 35%. The buyers mounted strong support at the $156 mark and bolstered a bullish set-up of double bottom patterns.
The AAVE price rebounded from the bottom support with an 8% intraday spike and responding to this pattern, the altcoin would climb to the $200 neckline. A 40% hike in volume activity encourages buyers to breach the overhead resistance.
Alternatively, a failed attempt to surpass the $200 resistance would initiate a consolidation phase for AAVE. This consolidation would keep the possibility of bottom support($157) fallout on the cards.
Technical Indicator
SMA- The downsloping 100-and-200-day SMA reflects an overall bear trend, whereas the rising 50-day SMA points to a short-term bullish trend. The recent price jump may soon breach the overhead 50 SMA, providing an extra edge to buyers.
Vortex indicator: the VI- and V+ slope reflects a bullish crossover. This buy signal should attract more buyers to the market.
Resistance levels: $200 and $250
Support levels: $180 and $157
