AAVE is currently positioned at approximately $124, maintaining its stance above a crucial support zone that lies between $90 and $110 on the weekly chart. This area is of particular interest following an 86% drop from its all-time high.
The ongoing market dynamics have brought attention to a multi-year ascending trendline, which has been active since 2021. This trendline coincides with the 0.618 Fibonacci retracement level, reinforcing its significance as a support region. Analysts observe that the asset is experiencing compression between a descending resistance and rising support, indicating a potential breakout could be on the horizon.
Analyst CryptoPatel has outlined a compelling technical case for AAVE, suggesting that the cryptocurrency could see a substantial recovery, potentially achieving a 10x increase from its current price. The critical threshold for bullish sentiment is set at the $74 mark. A weekly close below this level would invalidate the optimistic outlook, while maintaining above it keeps hopes alive for a rally.
The interest in AAVE appears to be building as it trades within a high-timeframe support zone. This range has garnered significant attention from technical analysts as they scrutinize the long-term trajectory of the asset. The convergence of the trendline and Fibonacci level adds weight to its relevance as a demand area.
CryptoPatel highlighted the current market conditions as a “liquidity sweep and reaction” from the established ascending trendline. This setup has led to speculation around a potential move towards key upside targets, with initial levels identified at $190, $345, and $579, ultimately aiming for a price point of $1,000 or more. These targets reflect a 10x return calculated from the accumulation zone near $90.
Notably, AAVE is traversing between the 0.618 and 0.786 Fibonacci support levels, which are often associated with deep retracements preceding significant recoveries in trending assets. The current price action will be pivotal in determining whether AAVE can confirm this bullish pattern, contingent on maintaining its support and the broader market”s momentum favoring a recovery in the decentralized finance (DeFi) sector.
