Will AAVE Continue Increasing? | Credit: Hameem Sarwar
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Key Takeaways
AAVE broke out from a long-term horizontal resistance at $120.
It is likely in wave three of a long-term five-wave upward movement.
How long will the AAVE increase continue, and what’s the next target?
AAVE did not perform well in 2023 but has fared much better in 2024. Initially, the price reached a temporary top of $153.72 in March and fell. However, it has regained its footing since, breaking out from a long-term resistance area in August and accelerating its increase.
The AAVE price reached another temporary top in September and declined.
However, it regained its footing last week and is heading to a new yearly high. Let’s look at the price action and see if it will do so, as well as the next target if yes.
The weekly time frame AAVE chart gives a bullish outlook. It shows that AAVE has increased alongside an ascending support trend line since June 2023. More recently, it bounced at the trend line in July 2024 and accelerated its upward movement.
The AAVE price broke out from the $120 horizontal resistance area the same month.
Except for a deviation in January, the area had provided resistance for 833 days. Shortly after the breakout, the price reached its yearly high of $180.74 on Sept. 26.
Technical indicators suggest the upward movement will continue. The Relative Strength Index (RSI) is above 50 and increasing, while the Moving Average Convergence/Divergence (MACD) is increasing positively.
The next long-term resistance is at $250.
Aave’s on-chain metrics are also positive since the protocol has over $20 billion in net deposits, more than twice as many as all the other lending protocols combined.
What’s the Next Target?
Similarly to the price action and indicator readings, the AAVE wave count gives a bullish price prediction.
The most likely count suggests that AAVE has started wave three in a five-wave upward movement (yellow). The breakout from the ascending parallel channel suggests this is the correct count.
A potential target for the top of wave three is at $144, created by giving wave three 1.61 times the length of wave one.
On the other hand, falling inside the channel’s confines will put the bullish count at risk. Then, the AAVE price could decline toward the $120 horizontal area, validating it as support again.
AAVE Increase Continues
The weekly and 3-day AAVE price charts are both bullish. The wave count suggests that AAVE can reach a high of $245 before any significant correction.
The trend remains bullish if the price does not close below $120.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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.
