Crypto News – Today’s high above $86 was achieved as a result of last week’s breakthrough of the AAVE price from a 500-day declining resistance trendline. The price is very close to a resistance level that has been in place since May 2022 at $110.
AAVE Price Raises Expectations as It Manages to Break 500-Day Resistance
AAVE has declined under a declining resistance trendline since May 2022, according to technical analysis on a weekly time period. As a result of the decline, the $50 horizontal area (green icon) was confirmed as support in June 2022, when it reached a low of $47.30. A higher low in August (white icon) resulted from an increase in AAVE since the rebound.
The altcoin finally emerged from the resistance trendline last week, reaching a high of $86.23 today, following four unsuccessful breakout efforts for the AAVE price (red icons). The line had been in place for more than 500 days when the breakout occurred.
Crypto Tony and Eliz883 both described the long-term descending resistance trendline for cryptocurrencies on X, saying that its breakout is a clear indicator of an imminent bull run. Since the all-time high, WolrdOfCharts has drawn a longer-term declining resistance trendline. He predicts the beginning of another bull run.
Will the AAVE Price Continue to Soar?
The breakout is validated by the weekly RSI. This is a result of the RSI rising above 50 (green icon) and peaking at 60. Since April 2021, when the price was almost at an all-time high, its value has been at its highest level. This indicates that the trend has changed from bearish to bullish when combined with the close above the long-term descending resistance trendline.
The next nearest resistance is at $110, which can be reached if the AAVE price moves up by another 30%. Despite the optimistic price forecast for AAVE, failing to maintain the rise could result in a 17% decline to confirm the resistance trendline at $68. A bearish weekly closing could be the reason for this.
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