As the bulls continue their charge above the pivotal $100 mark, AAVE has staged a remarkable reversal rally, eyeing the $200 milestone before the month’s end. The DeFi token’s recent performance suggests that a significant breakout could be on the horizon, fueled by a compelling double-bottom reversal pattern.
Double Bottom Reversal Fuels AAVE’s Rise
The latest 4-hour chart for AAVE reveals a notable pullback, with the price descending from $144 to $118—a 17% decline over a week. However, this dip appears to be a strategic consolidation phase rather than a bearish trend. The drop has stabilized, with strong demand cushioning the fall, and AAVE is now showcasing a bullish resurgence.
The recovery is highlighted by a double-bottom reversal within the consolidation range. This pattern has spurred a bullish engulfing candle on the daily chart, resulting in a 6.61% jump in price yesterday. Currently trading at $131.88, AAVE has experienced a modest intraday growth of 0.46%, indicating a fight to maintain upward momentum.
Technical Indicators Suggest Further Gains
- RSI: The 4-hour Relative Strength Index (RSI) reveals a bullish divergence, suggesting a positive shift in momentum. The RSI line, climbing out of a sideways range and surpassing the halfway mark, points towards a strengthening bullish phase.
- EMA: The 200 and 50 EMA lines on the 4-hour chart are acting as consolidation boundaries. A decisive breakout above or below these levels will signal the next phase for AAVE’s price action.
Can AAVE Reach $200 This September?
According to trend-based Fibonacci levels, AAVE is currently testing the 23.60% level at $134. The price action faces resistance from overhead supply, but a breakout could trigger a significant upward momentum.
For September, AAVE’s price targets are set at $155, $183, and $207, based on the 50%, 78.60%, and 100% Fibonacci levels, respectively. Conversely, if the price falls below $118, it may retest the $100 psychological level.
Also Read: AAVE Surges 45% In Four Weeks – Outperforms BTC And ETH Amid Exciting New Proposals
As AAVE navigates this critical juncture, the DeFi token’s ability to break through these key levels will determine whether it can achieve the $200 milestone before the month concludes. Investors and traders will be watching closely to see if the bullish trend can be sustained and propel AAVE to new highs.
