By observing the weekly chart of #AAVE vs #USDT several important points become clear:
1. Cup and Handle Pattern:
The chart shows a Cup and Handle pattern, which is a classic bullish pattern in technical analysis. This pattern begins with a long decline (forming the "cup") followed by a consolidation (forming the "handle"). When the handle is completed and broken upwards, there is often a strong upward price push.
2. Current Price Action:
The currency is currently in the "handle" phase, indicating the possibility of a strong upward breakout. The expected pattern is drawn with potential highs that may reach higher levels supported by the bullish scenario.
3. Long Accumulation Movement:
The currency has been in an accumulation movement since mid-2022 until now, which is evident through the sideways movement of the price. This accumulation period is often a prelude to strong upcoming movements. This sideways movement reflects a balance between buyers and sellers, indicating the possibility of the market being ready for a major breakout, whether upwards or downwards.
4. Resistance levels and expected targets:
- 132.97 and 154.99: The first levels that the price may face if the bullish pattern is broken.
- 184.93 and 230.13: They are considered major resistance areas, and they may be tested after a strong breakout.
- Higher levels such as 286.49, 343.43 and 420.33 represent ambitious targets in the long term if the rise continues.
