An analysis of AAVE’s recent price action reveals strong bullish momentum, with prominent crypto analyst McKenna highlighting a potential rally ahead for the DeFi token.
McKenna stated, “The inevitable God candle arrived for $AAVE clear skies until $260,” indicating a bullish outlook on AAVE’s price trajectory.
This sentiment reflects a broader “re-rating” across DeFi projects, suggesting renewed interest in decentralized finance and a revaluation of top assets in the sector.
Key Support and Resistance Levels for AAVE
AAVE’s price movement on the weekly timeframe shows clear levels of support and resistance, establishing a strong foundation for potential growth. The primary support level around $120 has historically served as a solid base, indicating consistent buying interest in that range. Another notable support level lies around $78.89, which has functioned as a reversal point during previous downtrends.
On the resistance side, AAVE recently broke through a key resistance zone in the $160-$165 range, marking a new level of market confidence. This breakout has paved the way toward the next resistance zone at $201.67, with McKenna’s analysis suggesting limited resistance beyond that point, allowing for a potential climb to $260.
Bullish Price Action and Breakout Signals
The AAVE chart reveals a powerful upward movement, often termed a “God candle” by traders. This large bullish candle represents a decisive breakout, driven by high buying pressure and sustained market optimism.
Closing above previous highs in the $160 range, this move signals the end of AAVE’s consolidation phase and the beginning of a new bullish trend. In technical terms, such breakouts are usually followed by extended upward moves if no immediate resistance levels impede the rally.
The emergence of this “God candle” after a period of accumulation highlights AAVE’s potential for continued gains, aligning with McKenna’s assertion of “clear skies” for the DeFi asset.
Image Source: X/Mckenna Uptrend Continuation and DeFi Market Sentiment
The price of AAVE has been steadily going up since early 2023. Each time the price dropped, it bounced back and hit a higher low, and each new high was higher than the last one. This pattern shows that overall, people buying and selling AAVE are feeling positive about it. AAVE has also broken out of the price range it was stuck in before, between $120 and $160.
According to McKenna, this upward trend may reflect broader revaluation across DeFi projects as the sector attracts renewed attention.
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With positive sentiment surrounding DeFi, AAVE and similar assets are experiencing increased buying interest, potentially leading to further price increases. This re-rating phenomenon underscores the market’s perception of value within the DeFi space.
The chart analysis suggests a price projection of approximately 51% above the breakout point, aligning with the analyst’s target range. If the current bullish momentum sustains, AAVE may approach McKenna’s estimated price target, contributing to a sector-wide rally. Key support zones at $120 and $160 provide strong fallback levels in case of pullbacks, while resistance around $201 could serve as a checkpoint for further gains.
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