AAVE’s bullish run over the past month could extend further.

While AAVE's success depends on breaking through major resistance levels on the third attempt, several key indicators support AAVE's expected rebound. Currently, despite its shaky week, Aave[AAVE] has achieved a 2.81% gain over the past 24 hours. Maintaining this momentum could offset this week's losses and put AAVE higher than it has been in the past two weeks. What's next for AAVE? Is a big rebound imminent, or is it still some way off?

AAVE’s Rally Seems Imminent

As of this writing, AAVE has gained momentum to break above the $153.72 resistance level, a level known for significant selling pressure that has previously pushed prices lower on three occasions.

If this resistance is successfully breached, AAVE’s next target will be $236.45, where a large liquidity cluster is visible on the chart. However, a closer target is $162.60, as there is a level of quiescent liquidity around this level.

If AAVE fails to attract traders at this point, the price could drop to $113.50, another area where liquidity is clearly concentrated.

Profitable traders will continue to exert buying pressure on AAVE

The “In/Out of the Money” indicator around the price shows that a considerable number of traders are “in the money,” which means that holding AAVE can be profitable.

As of now, 9.06k addresses are profitable, accounting for 71.04% of all AAVE holders, which suggests that these investors may continue to push prices higher.

A 46.48% decrease in active addresses is a bullish indicator, suggesting that fewer holders are inclined to sell their assets and are instead choosing to hold on to them.

This trend is confirmed by the decrease in AAVE’s circulating supply on exchanges over the past 24 hours, reflecting a strong holding pattern among investors.

Could fall to $116, threatening economic growth

According to CoinMarketCap, AAVE has achieved 12.84% growth in the past month.

However, this growth hit a snag as it failed to break above the significant resistance range between $142.69 and $153.72 on the third try. Currently, AAVE is preparing for another attempt to break through this key level.

Analysis from AMBCrypto suggests that AAVE is poised to break through this barrier as it is trading within an ascending triangle – a pattern known for its bullish implications.

A successful breakout of the ascending triangle might mimic its previous trajectory from the bottom of the ascending channel to its upper boundary, possibly reaching a high of $236.45, marked by a black arrow on the chart.

Conversely, if the ascending channel breaks down, AAVE could drop to $116, a figure that is very close to the $113.50 liquidation point highlighted on the Hyblock liquidation chart.

AAVE is targeting $236 and faces a critical resistance at $153.72. Understand its bullish trend and key resistance points that influence its market movements.

In simple terms

Although AAVE's success depends on breaking through the main resistance level on the third attempt, there are several key indicators that support AAVE's expected rebound. If this resistance level fails to be broken, the price may plummet to $116 or $113.5. But it is worth noting that the interest rate cut is set to increase with the arrival of October and the support of key indicators in the long run will drive the market further up.