TradeCityPro | AAVE Holds Gains as Altseason Optimism Builds👋 Welcome to TradeCity Pro!
In this analysis, I’m going to review the AAVE coin for you. It’s one of the major DeFi coins active in the lending sector and currently ranks number 1 in terms of TVL.
✔️ The token itself has a market cap of $4.58 billion and is ranked 29 on CoinMarketCap.
📅 Daily Timeframe
On the daily timeframe, since our last analysis, the price has increased by over 100%, and the trigger for long or buy positions was activated.
🔄 There was a descending trendline on this coin, and the trigger for its breakout was 148.17. After breaking that level, we could open a long position.
🚀 However, the main trigger was 194.97, and the primary uptrend started with the break of that level, continuing up to a high of 328.9.
📊 The issue with this current uptrend is that, as you can see in the second leg, there is clear weakness, which is not a good sign for the continuation of this trend.
📈 The current top at 328.9 is not far from the previous high, forming a double top-like structure, leading to a strong bearish divergence in the RSI.
💥 If RSI confirms a breakdown below 50, this divergence will become active and a correction toward 222.10 may occur. A break of that level would be the first signal of a potential trend reversal for AAVE.
⭐ On the other hand, if price wants to continue upward, we have a very important resistance at 383.59.
🔍 Breaking this resistance would initiate an uptrend in higher cycles and could even lead to a new ATH for this coin.
💼 I plan to open a long position if the 328.9 resistance is broken, and for spot purchases, I will wait for a breakout of 383.59.As long as the price remains above 279.45, I am not considering any short positions.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
