AAVE Price Analysis: AAVE Launches 20% Higher Becoming the Investors' Darling
- Aave price rally seems unstoppable after closing the day above $300.
- The slightest resistance path seems upward based on the overall technical picture.
- The transaction history model reveals a weakening bearish front while support strengthens.
Aave price has recently flipped massively bullish, leading to the recovery of the decentralized finance (Defi) sector and the entire market. At the time of writing, the token trades 20% higher at $335 after extending the bullish leg we discussed on Monday. The token is up 46% weekly and has attracted over $1 billion in trading volume.
Aave price upside unstoppable
The short-term technical picture is strongly bullish as per the Relative Strength Index's (RSI) spike into the overbought region. Although overbought conditions often precede a correction, assets sometimes stay in the area longer. Realize as long as the bullish grip is intact, Aave price action will close the gap to $400.
Simultaneously, a golden cross pattern came into light when the 50 Simple Moving Average (SMA) crossed above the 100 SMA in the four-hour timeframe. This is a highly bullish pattern that tends to point toward a long-term trend. Therefore, AAVE will likely continue the uptrend to $400 in the coming sessions.
AAVE/USD four-hour chart
The In/Out of the Money Around Price (IOMAP) by IntoTheBlock shines a light on a weakening bearish front. In other words, Aave only requires a slight push to gain ground toward $400. Nonetheless, this on-chain metric directs our attention to the region between $334 and $343. If this subtle resistance is broken, we will see the Defi token stretch the bullish leg further up.
On the downside, Aave sits on robust support highlighted between $314 and $324. Here, around 2,000 addresses previously bought approximately 942,000 AAVE. As long as this healthy support zone remains intact, AAVE will be propped toward $400.
Aave IOMAP model
It is worth mentioning that AAVE must close the day above $330 to keep the uptrend in check. However, a correction may take place, especially with the RSI holding in the overbought region. On the downside, support is expected at $300, which, if tested, will allow bulls to throw another jab at $400.