AAVE extends gains as THIS bullish pattern takes hold – is $154 next?

• AAVE continued to rise on the time of writing, with the RSI at 74 indicating rising shopping for exercise.
• The value has damaged out of the double backside formation, with the following main resistance stage at $154.

Aaf [AAVE] has prolonged its weekly rally of 37% to $136 on the time of writing, in response to CoinMarketCap. Buying and selling volumes have additionally elevated by 20% within the final 24 hours.

The good points come from rising market curiosity and buying exercise round AAVE. Whales are already making waves across the token, having purchased greater than $8 million value of AAVE prior to now few hours.

Supply:

Analyst Daan Crypto, on

So is AAVE ripe for extra good points?

Taking a look at technical indicators

A take a look at AAVE’s value motion since dropping to a two-year low in June 2022 exhibits that the worth has damaged via key resistance ranges.

AAVE has examined the 0.618 Fibonacci stage of $112 twice and stored the worth above this zone.

The token has additionally examined one other key resistance at $130, and if it breaks via, the following goal might be a two-year excessive at $154.

Since dropping from the March 2024 highs, AAVE has made a double backside formation. That is usually a bullish reversal sample preceded by a big rally.

The token has additionally damaged above the neckline of the double backside sample, paving the best way for a rally to $154.

Supply: TradingView

The Relative Power Index (RSI) of 74 indicated that robust shopping for strain was behind AAVE’s rally.

Whereas the RSI is heading into overbought areas, there’s nonetheless room for extra good points earlier than a doable correction. The RSI peaked at 86 throughout earlier rallies earlier than short-term merchants took earnings.

The Transferring Common Convergence Divergence (MACD) line is above the sign line, which can also be bullish. The MACD histogram bars have lengthened since August 15, reflecting stronger bullish sentiment.

So long as the MACD histogram bars develop longer resulting from rising shopping for exercise, the rally is more likely to proceed.

Extra bullish indicators for AAVE?

Santiment knowledge exhibits that the variety of day by day energetic AAVE addresses has reached the very best stage since July 2023.

Supply: Santiment

Real looking or not, right here is AAVE’s market cap in BTC phrases

This can be a bullish indicator, signaling growing demand across the token and rising market curiosity.

AMBCrypto’s look on Mint glass information additionally confirmed that AAVE’s Open Curiosity rose to its highest stage since 2021. Since August 1, OI has elevated from $93 million to $191 million on the time of writing.