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HomeCrypto NewsAnalysisAAVE Challenges Trendline Resistance: Is $200 the Next Stop?

AAVE Challenges Trendline Resistance: Is $200 the Next Stop?

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Will AAVE break through the bearish influence and rally to the psychological mark of $200?

As the crypto market experiences a slower day after a bullish start to the week, DeFi tokens are undergoing significant changes. AAVE, a DeFi lending and borrowing protocol, appears poised for a potential trend reversal.

AAVE’s pullback phase, testing a crucial resistance trendline, is nearing its conclusion. Could this breakout spark a rapid 30% rally for the token?

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AAVE Tests Crucial Resistance Near $157

In late September, AAVE’s attempts at bullish recovery struggled to break through a significant resistance trendline, encountering bearish pressure around the $176 level. Meanwhile, solid support at $137 has consistently provided a cushion, resulting in multiple bullish reversals.

AAVE price chart
AAVE price chart

The ongoing recovery has seen a 14% increase from $137.79 to $156, yet it again falls short of surpassing the resistance trendline. In addition to the supply line, the 50% Fibonacci level at $157 presents another barrier.

Currently, the bearish reversal from the overhead trendline has resulted in a 2.68% drop, testing the 20-day EMA on the 4-hour chart. However, the recent bullish cycle has led to a golden crossover between the 50 EMA and the 200 EMA. Additionally, the merging of the 50 and 100 EMAs hints at a potential crossover if bullish momentum continues.

The 4-hour RSI has struggled to exceed the overbought threshold, leading to a decline below the 14-day SMA. As a result, indicators suggest a high likelihood of an upcoming breakout.

Will AAVE Reach $200?

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If the uptrend can successfully breach the overhead trendline amidst a surge in the crypto market, AAVE could reach $200. Supporting this bullish trend, Fibonacci levels indicate potential breakout rally targets at the 100% and 1.618 levels, positioned at $176 and $200, respectively.

Conversely, the recent downturn has tested the $137 support level for the fourth time in just 30 days.

DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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