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.
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.
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.
