The post Is Aave on the brink of a breakout or pullback? appeared on BitcoinEthereumNews.com.

Aave (AAVE) has surged by 64.7% in less than a month. With such a strong rally, the question now is whether AAVE can continue its upward momentum or if it faces a potential pullback. In this week’s analysis, we examine the key technical indicators, resistance levels, and strategic considerations to determine the most likely direction for AAVE in the coming days. Resistance and support analysis Aave (AAVE) faces a critical juncture as it approaches a very strong resistance level at $115. This level has a significant history, having acted as resistance 20 times and support 24 times in the past. The price currently hovers around this key level, and the market is closely watching to see if Aave will once again encounter resistance for the 21st and 22nd times or finally break through. However, signs suggest that it may be difficult to overcome this barrier. When examining historical support levels, two key areas stand out: the $80 mark and the $50 mark. While the $50 level served as support during the bear market, it seems unlikely that Aave will revisit this area in the current market conditions. On the other hand, the $80 level is a more recent occurrence and represents a support level worth keeping in mind as Aave’s price action unfolds. Fibonacci retracements analysis Looking at the macro Fibonacci retracement from the low in August 2019 to the high in May 2021, we observe a significant 78.6% retracement level at $143.09. The last time Aave approached this level was in March 2024, when it ultimately failed to break through. Should Aave succeed in surpassing its historical resistance at $115, the next logical profit target would likely be set at this $143.09 level. On a more positive note, when examining the Fibonacci retracement from the March 2024 high to…

---

Filed under: News - @ August 4, 2024 3:10 am