Aave (AAVE) has been in a prolonged corrective phase, but price action suggests a potential bottom formation.
The higher time frame chart reveals a completed descending wedge structure, signaling a possible trend reversal.
Meanwhile, the lower time frame chart suggests an early impulsive breakout, which could confirm bullish momentum if key resistance levels are breached.
AAVE Price Analysis
AAVE has been in a long-term correction, forming a descending wedge since peaking at $402.27. The Elliott Wave structure suggests an ABCDE correction, with wave E recently hitting a low near $162.61.
This level is close to the 0.786 Fibonacci retracement, making it a critical support zone.
The RSI remains deeply oversold, signaling the potential for a relief rally. A breakout above the $200.00 (0.618 Fib) level could confirm a bullish reversal, targeting $238.74 (0.5 Fib) and $277.33 (0.382 Fib).
However, failure to hold $162.61 could invalidate the reversal scenario, leading to a further decline toward $145.20 or even $84.23 in a bearish extension.
A successful breakout above $238.74 would confirm the trend shift, paving the way for higher price targets in the medium term.
Looking for a safe place to buy and sell AAVE? See the leading platforms for buying and selling AAVE.
AAVE Price Prediction
The 1-hour chart suggests that AAVE is in the ending stages of a five-wave correction and is likely to be followed by a bullish breakout from its descending structure.
The initial wave (i) and retracement wave (ii) are expected to confirm the breakout, while wave (iii) will provide the strongest confirmation if the price holds above $200.
A minor correction toward $162-$165 would still be valid within the bullish structure. However, the key level to break remains $200.00, which coincides with the 0.618 Fibonacci retracement.
If AAVE clears this level, it could rally toward $238.74 (0.5 Fib) and $277.33 (0.382 Fib), completing the five-wave structure.
If AAVE fails to hold above $162.61, it could retest the $145.20 support, delaying the bullish breakout. RSI must stay above 40 to sustain momentum, with $238-$277 as the next key upside targets.
AAVE is showing early bullish signs, with a potential reversal forming. A break above $200 would confirm the next leg up, while failure to hold support could delay the uptrend.
Key Levels to Watch
- Immediate Resistance: $200.00 (0.618 Fib retracement).
- Key Resistance: $238.74 (0.5 Fib retracement).
- Major Resistance: $277.33 (0.382 Fib retracement).
- Immediate Support: $162.61 (recent low).
- Critical Support: $145.20 (0.786 Fib retracement).
- Short-Term Target for Wave (v): Above $238 if impulse sustains.
- Invalidation Zone: Below $145.20, confirming further downside.
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.
Was this Article helpful?
