Following the recent $130 breakout, the triple crow setup marks a retest phase for AAVE. Will a post-retest reversal reach $150?
As the altcoins market gains momentum, the DeFi space is back in action. With AAVE entering the top gainers list, a breakout rally teases a bull run in September.
Will this bull run reach the $150 psychological barrier in September?
AAVE Breakout Rally
With a market cap of $1.95 billion, AAVE is on the verge of hitting the $2 billion mark. The DeFi token has increased by 9.23% in the past 24 hours and is currently trading at $131.
On the 4-hour chart, Aave’s price action exhibits a robust uptrend, punctuated by a minor pullback. After reaching a 30-day peak of $148, the AAVE token later retreated to the $117 support level, where it bounced back multiple times.
Notably, it has also found support at the 200-period exponential moving average (EMA) on the 4-hour chart, suggesting a strong foundation for potential future growth.
According to trend-based Fibonacci levels, the AAVE token is facing resistance at the 38.20% level, approximately $137, struggling to break above it. Over the past 12 hours, the DeFi token has experienced a 3.14% decline, forming three consecutive bearish candles.
However, the recent V-shaped rebound, which successfully surpassed the 23.60% level at $129, suggests that the current correction is more of a retest phase rather than a reversal.
The MACD momentum indicator is displaying a positive trend, with both the MACD and signal lines crossing into positive territory, lending credence to the ongoing bullish trend.
Moreover, the 50 and 200 EMAs in the 4-hour chart continue to exhibit a bullish trend, maintaining a sideways trajectory despite the recent pullback.
Chances of a Successful Post-retest Reversal AAVE
The underlying demand for AAVE is gaining momentum, with key indicators in the 4-hour chart aligning to support the DeFi token’s upward trajectory. Notably, the token’s impressive 143% return over the past year underscores the strength of the ongoing bull run.
Against this bullish backdrop, the recent price rejection at lower levels suggests a potential post-retest reversal, setting the stage for a resumption of the uptrend. In this scenario, the 38.20% and 50% Fibonacci levels at $137 and $143 emerge as critical target zones.
On the downside, the $130 and $117 levels serve as crucial support zones, providing a potential safety net in the event of a bearish reversal.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
