The cryptocurrency market is showing bullish trends, with Ethereum having risen 21% this week and Aave displaying promising signs of growth.
Bullish Trend in the Cryptocurrency Market
The cryptocurrency market has overall transitioned into a bullish phase. Ethereum (ETH) has emerged as a leader with an impressive rise above $3,350. This overall growth positively affects other altcoins, including Aave (AAVE), which exhibited a 7% gain over the past week.
Analysis of Aave's Movement
Aave, the DeFi token, is displaying technical signals indicating potential growth. We are witnessing the formation of a classic ABC Zigzag corrective wave pattern. This is illustrated by the movement from $114.16 to $317.68, marking Wave (A). This was followed by a pullback to $213.25, completing Wave (B). Currently, Aave is climbing again, likely signaling the start of Wave (C).
Prospects for Aave in the Market
If this current structure continues to unfold, Aave may aim for a target range between $416 and $542. These levels correspond to 1.0x and 1.618x Fibonacci extensions, commonly used to project the end of Wave (C). With the current price around $322, this potential move could bring gains of 29% to 68% if the bullish sentiment continues.
The current market situation creates an optimistic outlook for Aave and other altcoins. However, it is important to remain cautious and watch for confirmations in market movements.
