AAVE is gaining bullish momentum above the $350 resistance. The price could rally further by 25% and test the $475 level in the coming days.
AAVE Price Signals Fresh Surge
After a sharp downside correction, AAVE price found support near the $272 level. A base was formed and the price started another increase above $300, bearing the odds and outpacing majors such as Bitcoin, Ethereum, and XRP. The price gained over 20% and surpassed the $350 resistance level.
There was a clear move above the 76.4% Fib retracement level of the downside correction from the $398 swing high to the $272 low. The price is now consolidating gains above the $350 level and the 50-day simple moving average (blue).
AAVE price daily chart | Source: TradingView.com
The current price action is bullish and suggests that AAVE price could continue to move up above $380. There is also a major bullish trend line forming with support at $335 on the daily chart.
On the upside, the price is facing resistance near the $385 level. The first major resistance is near the $398 high and the $400 handle. A clear move above the $400 level could easily send AAVE price toward the $428 level.
If the bulls remain in action above the $428 level, it could open the doors for a move toward the $475 level. It is close to the 1.618 Fib extension level of the downside correction from the $398 swing high to the $272 low.
Recently, Chainlink announced Smart Value Recapture (SVR) which is a novel non-toxic MEV recapture solution for users of Chainlink Price Feeds. Its integration by the AAVE community was recently proposed by bgdlabs and is undergoing governance approval.
Another Downside Correction?
Conversely, the price might start another downside correction. Immediate support is seen near the $362 level. The first major support is forming at $350. The next major support is near the trend line zone at $335.
If the bulls fail to defend the $335 support, it could spark heavy losses. In the stated case, the bears could aim for a downside thrust toward the $300 pivot level. Any more losses might send the price toward the $272 low in the coming days.
Overall, AAVE is showing positive signs above the $350 zone. It seems like the bulls could soon aim for more upsides toward the $428 level and then $475 in the coming days.
