The price of Aave is showing potential for a rally after retesting a key support level on the daily time frame. A successful retest could lead to a price increase to $150.
Technical Analysis and Indicators
The relative strength index (RSI) shows a reading of 57, indicating that the price is in the buyer zone and has room to run before becoming overbought in the case of bullish spikes. Additionally, the 50-day simple moving average (SMA) is below the current price and could potentially serve as support in case of further drops, suggesting a short-term bullish trend.
Mid-term and Long-term Perspective
In the medium-term and long-term time frames, the 100-day and 200-day simple moving averages (SMA) also show a bullish signal but provide more room for the price to retrace in case it continues to drop.
Aave Broader Price Outlook
The price of Aave recently broke out of a 4-month accumulation zone in mid-August, accompanied by a spike to the $150 area. The price then pulled back for a retest, which was followed by about a week of accumulation. Yesterday, the price broke out from the 1-week-long accumulation, and a successful retest today should see a continued rise. If the price goes back into the accumulation zone below $116, this price outlook will become invalid.
The overall outlook for Aave remains bullish as long as the price holds above the key support level. A rise to $150 is possible in the near future if the retests are successful.
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