- Aave rises above a crucial technical pattern, paving the way for gains to $800.
- AAVE's transaction history reveals the absence of hurdles to impede movement.
- Aave must defend the support at $400 to keep the uptrend intact while avoiding losses toward $300.
Aave's price action has been inclined to the bullish side in the last few days while the upward momentum came into play amid widespread gains across the cryptocurrency market. Consolidation in Aave's market gave way to the ongoing uptrend. At the time of writing, the decentralized token teeters at $437 while bulls look toward an upswing to $800.
AAVE Nurtures Ultimate Upswing to New Record Highs
The daily chart highlights the formation of a descending triangle. This pattern is bearish, but there are instances when it gives a bullish impulse, especially if the market is generally upward. A break above the triangle's x-axis results in a massive breakout with a target measured from the highest to the pattern's lowest points.
AAVE/USD Daily Chart
Meanwhile, as bulls nurture the uptrend, the Moving Average Convergence Divergence (MACD) gives a bullish signal. The momentum strength indicator has crossed into the positive region. Moreover, the MACD line (blue) expands the signal line's divergence, cementing the bulls' presence.
The bullish outlook has been validated by IntoTheBlock's In/Out of the Money Around Price (IOMAP) model. This model shows that Aave faces the slightest resistance in the journey toward $800. However, our attention is directed to the region between $490 and $503. Here, nearly 4,400 addresses previously bought approximately 120,400 AAVE.
Aave sits on top of a massive support zone on the downside. This robust anchor zone runs between $398.4 and $411.4. Here, roughly 3,600 addresses previously scooped up 2.3 million AAVE. It will be challenging for the bears to slice through this zone; thus, the least resistance path is upward.
AAVE IOMAP Chart
The same uptrend has been reinforced by a positive growth brought about by an increase in the number of addresses joining the network daily. From a monthly low of 758 addresses, AAVE currently receives an average of 1,200 addresses per day. This positive growth is a clear indicator of the project gaining traction. It also means that the uptrend is sustainable due to an improved inflow and outflow of tokens.
Aave Network Growth Model
Aave's future depends on two critical levels; the resistance at $500 and the support at $400. Slicing through the hurdle would catapult the price upward toward $800. On the downside, losses under $400 may invalidate the upswing and trigger declines eyeing $300.