Will a Wedge Breakout Boost AAVE Price Beyond $224?
November 27, 2024
AAVE
Will the recovery rally in AAVE push the price above $200 to reach a new 52-week high as it breaks out of a falling wedge pattern?
AAVE has emerged as one of the top performers in the crypto space, surging by nearly 17% over the past seven days. With its market cap approaching $3 billion, the Aave network’s total value locked (TVL) is nearing a new all-time high.
With the boost in its TVL, could AAVE’s price surpass $200 and achieve a new 52-week high? Let’s explore.
AAVE’s Wedge Breakout Run
The AAVE price trend in the 4-hour chart showcases a rising wedge breakout rally. The price jumped 11.79% in the past 12 hours with three consecutive bullish candles.
AAVE Price Chart
Currently, the DeFi token is trading at $191.83, sustaining above the broken resistance trendline. As per the November price action, the AAVE price trend showcases a double-bottom reversal from the baseline of $152.
The recent recovery run has broken above the neckline at $174 for the third time, reflecting the increased volatility. Furthermore, the bullish recovery has surpassed the 50% Fibonacci level at $187.75.
As the AAVE price trend gains momentum, the broader market expects a new swing high above the $200 psychological mark. If this happens, it will complete a new swing high, marking a change of character.
The 50-day, 100-day, and 200-day exponential moving averages (EMAs) have all aligned positively with the ongoing recovery. Moreover, the 4-hour RSI is approaching the overbought boundary, suggesting that short-term technical indicators are bullish.
AAVE TVL Nears $19.44B, Hints Bull Run Ahead
As AAVE’s price rises, its Total Value Locked (TVL) is approaching a new all-time high. Currently, the AAVE TVL stands at $18.84 billion, closing in on the $19.44 billion record high.
However, compared to the 2021 bull run, AAVE’s price has yet to reach similar peaks. This indicates a visible divergence between AAVE’s market price and its TVL.
An ongoing uptrend in TVL could trigger a surge in bullish momentum for AAVE’s price.
AAVE Price Targets
Based on trend-based Fibonacci levels, immediate resistance is found at the 61.80% Fibonacci level, around $196.49. If AAVE breaks out above this level, the next target could be $208. Beyond that, the 100% Fibonacci level suggests a price target of $224.78.
On the other hand, if the bullish rally fails to hold above the broken trendline, AAVE could fall to the 38.20% Fibonacci level at $179.
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