Aave Price Forecast: AAVE Creeps To Monthly Barrier Ahead Of Breakout To $700
- Aave price forms an ascending triangle pattern on the daily chart, suggesting a colossal 60% breakout to $700.
- Improving on-chain fundamentals will likely keep AAVE on an upward roll toward $430 in the coming sessions.
Aave is at the help of impressive bullish performances in the cryptocurrency market on Wednesday after gaining traction from September 7 lows of $280 to exchange hands at $389 at the time of writing. This $5.1 billion cryptocurrency is up 15% in the last 24 hours, attracting $922 million in trading volume.
Exploring Aave Price Massive Potential Upside
The decentralized finance (DeFi) protocol had endured a month-long consolidation before last week’s drop to $280. 2. While Aave made a series of higher lows since June; the $430 resistance level continued to reject the price from advancing further.
Such market behavior seemingly formed an ascending triangle on Aave’s daily chart. A horizontal line can be drawn along with the swing highs, while a rising trendline developed along with the swing lows.
A recent spike in the buying pressure behind the pioneer cryptocurrency brings the token closer to the horizontal barrier at $430. If bulls slice through this hurdle, Aave could shoot up nearly 60% to $700 based on the ascending triangle formation.
This target is determined by measuring the distance between the two highest points of the triangle and adding it to the breakout point. The ascending triangle is a highly bullish chart pattern.
AAVE/USD Daily Chart
The Moving Average Convergence Divergence (MACD) adds credence to the potential breakout. Note that a buy signal may be presented soon, compelling investors to stack up more AAVE tokens. Traders can look out for the 12-day EMA crossing above the 26-day EMA to validate the impending uptrend.
A closer look at the daily chart brings into light a golden cross pattern, highlighted by the 50-day Simple Moving Average (SMA) crossing above the 200-day SMA. Most analysts and traders use this technical index to affirm the intensifying bullish grip on the price, which often marks the beginning of a bull run.
IntoTheBlock’s on-chain data shows that the number of transactions on the Aave blockchain has increased to levels last seen in August after dropping to 1,350 on September 2nd. Currently, the transactions stand at 2,600 per day. A persistent increase in this metric will stir a price action north.
Aave Transaction Volume
Consequently, both the number of new and active addresses has grown in the last few days to 373 and 1,000, respectively, according to IntoTheBlock. Spikes in both of these metrics are bullish signals and often allow bulls to sustain the uptrend.
Aave Address Activity
On the other hand, failing to break the triangle barrier at $430 may keep Aave in limbo for another extended period before a breakout comes into the picture. Support around $380 or above the 50-day SMA could ensure that the progress made in the last week is not lost.