AAVE price started a major increase from the support zone. It is up nearly 20% this week and might extend gains above the resistance.
- AAVE price gained pace after it surpassed the resistance against the US dollar.
- The price is trading below and the 100-day simple moving average.
- There was a break above a major bearish trend line with resistance at on the daily chart of the AAVE/USD pair (data source from Kraken).
- The pair could continue to rise and might soon test the 0 resistance zone.
AAVE Price Starts Fresh Increase
After a steady decline, AAVE price found support near the zone. The price formed a base above the level and started a steady increase.
There was a clear move above the and resistance levels. The price climbed above the 23.6% Fib retracement level of the downward move from the 6 swing high to low. Besides, there was a break above a major bearish trend line with resistance at on the daily chart of the AAVE/USD pair.
The price is now trading near the resistance and the 100-day simple moving average. It is also showing positive signs, outperforming bitcoin and ethereum.
Source: AAVEUSD on TradingView.com
On the upside, an immediate resistance is near the zone. The next major resistance is forming near the zone. It is close to the 50% Fib retracement level of the downward move from the 6 swing high to low. If there is an upside break above the and 0 levels, the price could surge over 10%. In the stated case, the price could rise steadily towards the 0 level.
Dips Limited in AAVE?
If AAVE price fails to continue higher above the or levels, it could start a downside correction. An immediate support on the downside is near the level.
The main support is near the zone. A downside break below the level could open the doors for a fresh decline towards . The next major support is near the level.
Technical Indicators
Daily MACD – The MACD for AAVE/USD is slowly losing momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for AAVE/USD is now above the 50 level.
Major Support Levels – and .
Major Resistance Levels – , and 0.