Can DMA Crossover Drive AAVE Price to Break $200?
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The aligned setup of double bottom breakout and the AAVE version 3 liquidity mining going live on Avalanche had surged AAVE price by 8% on early Wednesday. The coin price tagged the $200 psychological level, indicating a 26.3% gain from the $157 higher low support. However, the sudden selling pressure has reverted the coin price, displaying a high-wick candle.
Key points:
- The AAVE chart shows a morning star candle in the monthly time frame chart
- The 50-and-100-day DMA presents a bullish crossover
- The intraday trading volume in AAVE/USD is $423 Million, indicating a 109.1% fall.
Source- Tradingview
Over the past three quarters, a descending trendline constantly hammered down the AAVE buyers’ attempt to sustain a genuine uptrend. However, amid the march rally, the coin price gave a massive breakout from this trendline, signaling an upcoming bull run.
The bullish breakout marked a high of $261 on April 1st and immediately reverted to retest the breached resistance. The falling price reached the breached trendline at the $157 mark and formed a double bottom pattern.
Furthermore, The AAVE price rebounded with a bullish breakout from the $180 neckline. The coin price currently trades at the $188 mark, indicating a 22% growth since the retest.
A 108% pump in volume activity suggests rising bullish momentum, encouraging buyers to pierce the overhead resistance of $200. If buyers succeed, the altcoin will surge to the $220 mark, followed by $260.
Alternatively, the $180 fallout could dump the coin price back to $157 support, questioning the credibility of the trendline breakout.
Technical Indicator
The crucial DMAs(20, 50, 100, and 200) present two contradictory setups. The 20 DMA slope moving near the $200 resistance zone interrupts the buyers to obtain a resistance breakout. However, a potential bullish crossover between the 50-and-200 DMA encouraged additional buying for this coin.
A successful retest to the long-coming resistance trendline prevented the MACD indicator line from dropping into bearish territory. These lines are nearing a bullish crossover, bolstering a breakout from the $200 mark.
- Resistance levels: $200 and $250
- Support levels: $180 and $157
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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