AAVE Approaches $200 After Bullish Reversal — More Upside Ahead

AAVE ended its 87-day decline on March 11 and gradually moved upward. Initially, it struggled to clear its first resistance area, keeping the optimism around the rally in check.

However, AAVE gained momentum last week, breaking from a long-term bullish pattern. The price created another short-term bullish pattern, reinforcing the possibility of even more upside.

Will AAVE’s upward movement accelerate further if the price confirms this pattern? Let’s find out.

AAVE Price Breaks Out

The daily time frame shows that AAVE has decreased inside a descending wedge since its cycle high of $400 in December 2024.

The decrease culminated with a low of $160.15 on March 13, shortly before the descending wedge was complete.

As predicted last week, AAVE has increased, breaking out from the wedge on March 19. Today, the AAVE price reached a high of $192.61.

Technical indicators support the breakout. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bullish divergences (orange) before the breakout, legitimizing it.

However, the wave count shows that AAVE completed a five-wave downward movement (red) inside the wedge, suggesting a bearish long-term trend.

So, the upward movement of the AAVE is more likely to be a relief rally than the beginning of a new bullish trend reversal.

The closest resistance area is between $240 and $250, created by a horizontal and Fibonacci resistance.

AAVE Creates Bullish Pattern

Similarly to the daily time frame, the six-hour one is bullish, supporting the possibility of an AAVE breakout.

The six-hour chart shows a bullish Adam and Eve pattern, which often transpires at the end of corrections and leads to trend reversals.

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AAVE’s short-term bullish pattern fits the breakout from the long-term wedge, bullish indicator, and wave count readings.

As a result, AAVE will likely continue increasing until it reaches the $240 horizontal resistance area.

There is a minor resistance level at $195. A breakout from it will confirm the short-term bullish pattern and, in turn, AAVE’s rally.

April Rally Incoming

The AAVE price shows bullish signs in the daily and six-hour time frames. ADA has broken out from a long-term bullish pattern and created a short-term one.

If this bullish AAVE prediction continues, the price will reach the $240 horizontal resistance area in April.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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