How Defi Token Aave Price Preparing For 51% Move Above $500
- Aave price secures support at $285 after recovery hit a barrier at $340.
- An ascending triangle pattern hints at AAVE spiking 51% to $510.
Aave joined in the retreating party from weekly highs of $340. The correction gained momentum under $300 before support at $285 came into the picture. Meanwhile, recovery is underway, with AAVE jumping above $300.
Aave Price Bullish Formation
The four-hour chart illustrates an ascending tringle, hinting at a 51% liftoff to $510. This is a technical bullish continuation pattern that often forms in an uptrend. However, ascending triangles must meet certain conditions; a trend line connecting a series of higher lows and a horizontal line (x-axis) linking the peaks.
The pattern shows that bulls are getting stronger as the price forms a higher low pattern. On the other hand, bears remain stubborn, explaining the massive resistance at $340.
A breakout is usually anticipated at the x-axis and results in a rapid upswing. Note that for an ascending triangle to form, the market must generally be in an uptrend.
At the same time, the pattern will start to take shape as the market consolidates. As the price rises gradually, buyers intensify their grip, and sellers lose traction, leading to a breakout equal to the distance between the highest and lowest triangle points.
AAVE/USD four-hour chart
It is essential to realize that the 51% rally to $510 is mainly a long-term prediction. Hence, Aave will likely retest the ascending trend line severally before the breakout occurs.
On the other hand, a golden cross pattern is most likely to form in the near term. It is also a bullish chart formation, suggesting that buyers will gain traction. For now, Aave is required to hold onto support at $300. This will ensure that bulls focus on the triangle resistance at $340.
At the same time, the 50 Simple Moving Average (SMA) crossing above the 12-day EMA will add credence to the bullish narrative.
The IOMAP model by IntoTheBlock shows that buyers have the upper hand, especially with the absence of a robust resistance zone. However, the model highlights the region running from $314 to $323, where 1,300 addresses bought 1.43 million AAVE. A break above this subtle region may blast the Defi token to $340 and perhaps trigger the ascending triangle’s 51% rally to $510.
Aave IOMAP chart
On the downside, Aave is sitting on top of robust support highlighted between $286 and $295. Here, 2,300 addresses previously scooped up 3.2 million AAVE. Holding this support in place will ensure that losses significantly under $285 are averted.