This week, the crypto market witnessed a notable correction following the pioneer digital asset Bitcoin. From Monday’s peak of $70000, the BTC price is 11.6% to trade at $61862, bolstering a fresh correction trend in most major altcoins. However, despite the renewed correction sentiment, the DEFI token AAVE and Curve Dao price showed notable resilience and continued to develop their reversal pattern to bolster further recovery. 

AAVE and Curve DAO Price Shows Reversal Pattern

AAVE Price Emerged From Major Reversal Pattern

AAVE price has recovered significantly in the past two weeks, outperforming the general market downturn. The bullish turnaround uplifted the asset from $85.75 to $116.5, registering a return of 35.8%.

On August 1st, the rising AAVE price breached the $110 neckline resistance of the double bottom pattern. The chart setup consists of two distinct troughs at a similar price level and is a precursor to potential upward momentum.

AAVE price currently trades at $115, with a market capitalization of $1.72 billion. An intraday gain of 5% shows the asset’s sustainability for a post-breakout rally. This reversal pattern suggests a target gain equal to the height from the support to the neckline, projecting a possible 35% increase to around $150.

Notably, this recovery is supported by classic on-chain metrics that highlight network growth. Over the past two weeks, the number of active addresses surged from 583 to 1.14k, and new addresses increased from 144 to 300. Additionally, zero-balance addresses rose from 154 to 387. These nearly doubled metrics indicate a growing user base and increased network activity, both positive signs of AAVE’s continued strength.

On the contrary, a breakdown below $110 with a closing of a daily candle will invalidate the bullish thesis. This fake-out scenario will accelerate selling momentum and push the AAVE price back to the $71 support.

Curve DAO Price Escapes Seven-Week Consolidation

Over the past seven weeks, the Curve DAO token (CRV) has displayed a sideways trading pattern within a symmetrical triangle. This pattern, characterized by two converging trendlines, indicates a temporary consolidation for traders to recuperate the prevailing market momentum.

While the broader market correction supports the bearish narrative, CRV price breached the triangle’s upper boundary on August 1st, indicating a positive shift in momentum. Currently, the CRV token trades at $0.28 and shows price sustainability above for a potential rally with long-wick rejection.

With sustained buying, Curve DAO token price could target the triangle’s peak of $0.367, suggesting a potential 30% gain. Further analysis of higher time frames reveals a falling wedge pattern, active since January 2022. The two downsloping trend lines indicate the current downtrend is nearing its maturity.

Under this influence wedge pattern, CRV could potentially target a $0.6 high before challenging the wedge’s resistance.

Moreover, open interest for Curve DAO futures has increased from $66.7 to $94.8 million within a week, accounting for a 42% spike. This surge in open interest typically indicates a growing interest from traders and the potential for a higher price rally.

CRV Futures Open Interest| Coinglass

On the other hand, if the broader market selling pushes CRV back within the triangle, the sellers could strengthen their grip. A potential breakdown could plunge the asset 22% down to seek next at $0.21.

The post AAVE and Curve DAO Price Show Strength in Sea of Red appeared first on CoinGape.

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Filed under: News - @ August 3, 2024 2:18 pm