Your weekly Wednesday column, the crypto trend, is finally back after a short break of a month! Today, the program will focus on an analysis of a particularly interesting asset, as of the previous bullrun: AAVE. For several months, the vast majority of altcoins have been operating a bearish dynamic, particularly substantial, which paves the way for new lows. However, AAVE is moving against what we usually know. It will therefore be an opportunity to review its price action over the previous months and what it will have to do in the coming weeks by defining the most likely scenarios.
An exit from the range that seems to be confirmed
AAVE price against the dollar on the weekly time unit (1W)
We have had the opportunity to analyze the technical situation of AAVE several times but until now, it was evolving in its technical range which includes a low terminal at $50 and a high terminal at 109 dollars. The year 2024 was marked by the asset's ability to stay in the upper area of the range, above the $70 technical pivot. Following the constitution of a support and several attempts to cross the range upwards, it seems that this time, it is finally confirmed!
Having approached the technical zone at $154, the current challenge still concerns the need to stay above the old high boll to build a support, which will allow AAVE to look for new heights for this year 2024. If AAVE manages to cross the technical zone, represented in gray, it will have the way open for a return to $200.
A daily upward trend
AAVE price against the dollar on the daily unit of time (1D)
On the daily time unit, we have additional information. First, note that the trend of this time unit is bullish, as well as on the weekly scale, which is a first sign in favor of buyers for the coming weeks. Following the crossing of $120 (August summit), AAVE extended its momentum, currently building a range with this level as a support and a resistance at $144.
By consolidating within this area for several days, our bias will remain bullish as long as AAVE does not return below the last rebound zone, i.e. it must avoid at all costs a reintegration of the range which would mean the strengthening of the bearish dynamic. During this month of September, it will be necessary to follow the ability of AAVE to overcome this resistance as well as the technical zone, just above, to hope for a continuity of the increase. With a rather calm bitcoin, and ethereum in a weak position, AAVE's opposite position is particularly interesting, testifying to its viability and seriousness in risk management within the DeFi.
In absolute terms, we have nothing more to add to this analysis, now providing all the language elements necessary to understand the dynamics of the AAVE course. If buyers come to come forward to start again on a new bullish leg, they will strengthen their dominance position that began in August when a particularly long range went up. Continuing its expansion towards Zksync Era, AAVE demonstrates its leading position in its branch of the ecosystem.
