Aave hits 100% extension target – Where would the price go
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
Aave has been on a Moon mission on the charts for the reason that launch of AAVE V3 in mid-March. The near-term market construction was strongly bullish. The upper timeframes additionally confirmed that the breakout previous the $200 space was technically vital. It appeared seemingly that Aave would maintain this momentum up within the days to return.
In deep blue is a trendline resistance stretching again to August 2021. Prior to now few days, this practically eight-month trendline resistance line had lastly been damaged. It was a bullish growth. Since mid-March, AAVE has had a bullish outlook on the charts, and this growth additional bolstered bullishness.
Fibonacci retracement and extension ranges (yellow) had been plotted based mostly on AAVE’s transfer from $158.6 to $210 and confirmed the 61.8% and 100% extension ranges to lie at $241.8 and $261.4. The worth has just lately been rejected on the $261 stage.
$241, $224 and $210 are locations the place AAVE may finish its retracement and proceed transferring upward as soon as extra.
The hourly RSI continued to stay above impartial 50 to point out that bullish momentum was nonetheless current. The Stochastic RSI descended to oversold territory, and brought collectively they instructed a bounce may happen on the $241 stage.
The CMF was properly above the +0.05 mark, whereas the OBV has additionally been climbing up to now few days. Therefore, we are able to conclude that sturdy shopping for stress was current at press time.
The momentum and quantity indicators gave a optimistic view of bullish worth developments for the following few days. A retracement to $224 or $210 can’t be dominated out, however on the time of writing, it appeared just like the $240 space may see AAVE bounce greater.
Even within the occasion of a deeper correction towards $200 for AAVE, the upper timeframe charts instructed that bulls had been nonetheless in management. The transfer above $150 and $192 was an vital occasion that suggestions the stability in favor of the bulls and demarcated the $200 space as a requirement zone with shopping for alternatives. To the north, a breakout previous $260 will set the following goal of $312 (200% extension) for AAVE.