AAVE poised for potential breakout, analyst predicts $180-200 target

• A bullish pennant formation in AAVE has targeted the $180-$200 range, indicating potential for strong market growth.
• Increased trading volume and a MACD crossover have hinted at bullish momentum, although some traders are cautious about a possible pullback.

According to crypto analyst World of Charts, Aave [AAVE] is poised for another bullish breakout.

The analyst predicts that AAVE could soon reach the $180-$200 range if the bullish pennant pattern unfolds successfully.

At the time of writing, AAVE was trading at $134.67, marking a 6.30% increase in the last 24 hours and a 9.40% gain over the past week.

This bullish outlook follows a recent forecast by the same analyst on September 4th, where AAVE saw a nearly 24% profit and broke through another bullish pennant pattern on the hourly chart.

World of Charts anticipates a potential 20-25% price increase if the current trend persists.

Technical Indicators Point to Bullish Sentiment

The AAVE chart shows a strong upward trend, surpassing the key resistance level of $130. Bollinger Bands widening indicate increased market volatility.

While the price is near the upper band, suggesting overbought conditions, the 20-period moving average offers support for sustained bullish momentum.

Source: TradingView

Furthermore, the MACD indicator shows ongoing bullish momentum, with the MACD line crossing above the signal line.

While the histogram bars are shrinking, indicating a potential weakening of momentum, traders are monitoring closely for a bearish crossover that could signal a short-term trend reversal.

Trading Volume Reflects Buyer Interest

AAVE’s recent price surge is accompanied by an uptick in trading volume, reaching $338,983,007 in the last 24 hours, indicating strong buyer interest.

However, there are signs of a slight tapering in volume, raising concerns about fading buying pressure.

Analysts are watching for any volume spikes that could either confirm the upward momentum or signal the start of a correction.

The AAVE network has seen steady growth in user activity, with approximately 161.95k addresses holding a balance as of September 2024.

This growth trend reflects strong user retention and heightened interest in the protocol, despite price fluctuations in AAVE.

Source: IntoTheBlock

As reported by AMBCrypto, the AAVE/USDT pair has shown consistent price increases, forming higher highs and higher lows.

Read Aave’s [AAVE] Price Prediction 2024–2025

The weekly candle recently closed above the true close of a consolidation range that lasted over 800 days.

In case of a pullback in AAVE’s price, analysts highlight the $108 support zone as crucial to maintaining the upward trend.