- AAVE overshadows descending triangle bullish impulse target to hit a new all-time high of $620.
- Aave upswing seems unstoppable based on the short-term technical indicators like the MACD.
Aave has gone ballistic on a day Bitcoin and other major cryptocurrencies suffered a significant pullback. The decentralized finance (Defi) token posted double-digit gains of more than 17% over the last 24 hours, while bulls have accrued 26% in seven days and 53% in 30-days.
The majestic upswing occurred amid Bitcoin’s downswing to levels below $50,000. As expected, a significant movement in Bitcoin price tends to pull the market. Ethereum dropped under $4,000 while Ripple tested support at $1.33. Dogecoin also suffered under the solid bearish hands, plunging to $0.35.
Aave seeks to settle above $600
Before the breakout, Aave consolidated within the confines of a descending triangle. This pattern has a bearish impulse; however, there are instances when it results in a bullish breakout. Support at $424, reinforced by the x-axis, allowed bulls to overpower the sellers, hence the majestic uplift.
Aave set out on a 28% target, but an improving technical picture bolstered the Defi token to highs beyond $600. As mentioned, a record high has been formed at $620, but AAVE is currently seeking support above $600.
AAVE/USD four-hour chart
The short-term technical outlook is still bullish despite the massive gains. A comprehensive look at the chart shines a light on the Moving Average Convergence Divergence (MACD). This indicator follows the trend of an asset and measures its momentum. If appropriately used alongside other indicators and chart patterns, it can identify positions to buy the dip and sell the top.
Meanwhile, the MACD has a bullish impulse, thus adding weight to the uptrend narrative. It is essential to note the MACD line (blue) divergence above the signal line. Sustaining this picture would call more buyers into the market as investors speculate the bullish phase to $1,000.
Looking at the other side of the fence
According to Santiment, AAVE’s social volume has spiked massively in the last 24 hours. The chatter around the Defi token is a great contributor to the recent launch. However, a massive social media volume is a bearish signal.
Aave social volume
Usually, it is impossible to keep the social media-related comments flowing at such a high rate. A sharp drop tends to follow the spike, making it difficult for bulls to sustain the moment. Therefore, a correction is expected as the volume drops across all social media channels.