- Failed Breakout and Crucial Support Zones
- Consolidation Phase and Broader Market Context
- Potential Scenarios and Price Targets
Crypto analyst Rekt Capital emphasized the importance of the $146 resistance level for AAVE's breakout potential. In his recent analysis shared via X, he highlighted this level's significance.
Failed Breakout and Crucial Support Zones
AAVE has attempted to breach the $146 resistance level multiple times without success. This suggests that bullish momentum is currently insufficient for a decisive move. The crucial support level is at $111.97. A breakdown below this point could signal further downside risk. Another support area between $74 and $90 may offer a demand zone for bulls if the price retreats.
Consolidation Phase and Broader Market Context
After a prolonged downtrend from its 2021 peak, AAVE has been consolidating between $110 and $146. This consolidation phase is critical for determining AAVE's medium-term direction. A close above $146 could lead to a bullish breakout, while continued rejections might push the price toward lower support zones. Rekt Capital noted that AAVE has created a falling wedge pattern, often indicating bull market continuation. However, he advises caution as the price remains trapped in the consolidation zone.
Potential Scenarios and Price Targets
For AAVE to initiate a bullish breakout, a weekly close above $146 is necessary, with further confirmation from a push past $155 to $160. If cleared, the next resistance target would be around $200. Conversely, if AAVE breaks below $111.97, it may retest support zones between $74 and $90. Further weakness could lead to a drop to $52, as indicated by Rekt Capital's chart.
The current situation indicates that AAVE needs to surpass key resistance levels for significant growth. Investors should monitor the $146 level to determine the potential price direction.
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