Aave (AAVE) is bucking the downtrend by showing a significant rally despite the general uncertainty in the cryptocurrency market.
The altcoin is up 13% in the past 24 hours, reflecting a shift in trader sentiment as many investors assess the upside potential.
“AAVE formed a bullish price action pattern after successfully testing a critical breakout level.”
Despite the declines in major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), Aave has gained a special place with a remarkable price increase of 15%. This performance can be explained by increased trader interest and the accumulation of long positions.
According to Coinglass, AAVE’s trading volume has increased significantly, indicating rising confidence among traders and increasing long positions. This could indicate strong bullish sentiment. The long/short ratio for AAVE/USDT has reached a high of 2.10 on Binance, indicating that 68.50% of traders are betting on a higher price. This has increased interest in AAVE, indicating a bullish case despite the overall market decline.
Additionally, the data highlights a strong belief that AAVE could break above current resistance levels, suggesting increased price stability and a potential breakout.
AAVE has formed a bullish engulfing candlestick pattern at a strong support level of $290. Currently facing resistance at around $337, AAVE could close a daily candle above $340 if it breaks above that level. In such a case, the price could rise by 25% to $415.
Importantly, AAVE’s Relative Strength Index (RSI) is currently at 57, suggesting that the altcoin has not yet reached an overbought condition and has room for further upward movement.
In the latest trading session, Aave is trading at around $330, a significant 13% increase in 24 hours. The increased trader participation seems to have created an optimistic market environment.