Key Takeaways
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.
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.
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.