Crypto: Buying Opportunity on AAVE? Technical Analysis of August 29, 2024

After two consecutive weeks of gains, AAVE is suffering a correction of more than 10%. Let's take a look at the future outlook for the AAVE price.

AAVE situation

Since May 2022, AAVE has been in a consolidation period between $46 and $123. It was not until March 2024 that the cryptocurrency broke through this last price level, reaching a high of $154. Unfortunately, the buyers' interest in the cryptocurrency did not last, leading to a decline to its last identified support around $75. It was at this price level that buying support was observed. Indeed, after a short consolidation phase, AAVE recorded a 105% increase in two months. Everything suggested that the cryptocurrency would reach or even surpass its last high of $153, however, the crypto market, being revised downward, weighed on the price of the crypto.

At the time of writing, AAVE is trading around $121. The short-term trend of the crypto is bullish, as is its medium- to long-term trend. These observations are supported by the fact that the crypto is still above its 50-day and 200-day moving averages, both of which are trending upwards. On the AAVE momentum side, although it has recently declined, it remains bullish, as evidenced by the crypto price itself as well as its oscillators.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Hypotheses for the AAVE course

• If the AAVE price holds above $105, we could anticipate crossing $153. The next resistance to consider, if the upward movement continues, could be around $200. Beyond that, we can note $260, which would represent an increase approaching 112%.

• If AAVE price fails to hold above $105, we could be looking at a return to the $90 levels. The next support to consider, if the bearish move continues, would be around $75, representing a decline of around 38%.

Conclusion

AAVE has experienced a long consolidation phase followed by a significant increase. Following a slight bearish correction, the crypto has initiated a rebound. Unfortunately, market pressure has limited its potential for growth. Currently, the cryptocurrency's trend remains positive, supported by favorable technical indicators. Thus, optimism is in order. However, it will be crucial to carefully observe the price reaction at different key levels to confirm or deny current assumptions. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.