AAVE Approaches $200 After Bullish Reversal — More Upside Ahead

Key Takeaways

• AAVE is creating a bullish Adam and Eve pattern.
• The AAVE price broke out from a descending wedge
• How long will AAVE’s upward movement continue?
• Interested in buying or selling AAVE? Read our review of the best exchanges to buy and sell AAVE.

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.