Aave's potential for price surge or if the rally has peaked already under scrutiny?
Aave's Current Bullish Structure:
Aave, the decentralized lending protocol, is still on an upward trend despite a recent correction. The price is now approaching a potential higher low region near $159 that could set the stage for the next leg up. After hitting a swing low at $114, Aave rallied significantly, peaking near the $316 high time frame resistance.
Although the price has pulled back, the overall trend remains bullish. This correction is seen as a potential setup for a higher low formation, a promising sign for the continuation of the longer-term uptrend.
The Importance of the $159 Higher Low:
The $159 area is significant because it aligns with the value area low, high time frame support, and a key swing low, forming a potential higher low region. This zone could act as a strong support level, with buyers stepping in at this price point to prevent further declines and push the price higher.
Key Technical Points:
- Potential Higher Low: Confluence of value area low, high time frame support, and key swing low.
- Resistance: Current trading near the point of control acting as short-term resistance.
- Volume Profile: Important to observe influx in volume around the higher low zone to confirm bullish continuation.
The Bullish Trend Continues:
Corrections in bullish trends can be healthy, as they help re-establish balance between buyers and sellers. The current correction near the point of control is acting as local resistance. A pullback from this area would not be unusual, especially after the recent overextension. However, a return to the $159 zone with above-average volume would suggest strong buyer participation, which could help Aave reclaim higher levels.
Macro Perspective:
The correction from the $316 resistance has not invalidated the uptrend. As long as Aave prints a higher low and maintains its bullish structure, the outlook remains favorable for further upside. But if Aave fails to hold $159, it could trigger a deeper retracement and shift the short-term outlook bearish.
Looking Ahead:
Watch the $159 support area closely. If Aave manages to form a higher low here with strong volume, it could resume its bullish trend and move back towards the $316 highs. Conversely, a rejection at the current resistance and a loss of the $159 support would invalidate the bullish setup, tilting the structure bearish in the near term.
Price Forecast:
Analysts predict that Aave could target prices between $280 and $350 by mid-2025, with some even predicting prices up to $356 or beyond by late June 2025. Short-term targets see Aave potentially reaching around $298 to $302 by the end of June to early July 2025, marking approximately a 14-15% increase from current levels.
These bullish projections are based on growing total value locked (TVL) in the protocol, strong governance, and continued development, which underpin Aave's position as a leader in decentralized lending markets. Key support levels below the current price include $235, $212, and $200, signifying that $159 is a conservative support zone that could provide a safety net if prices were to dip sharply.
In Summary:
The $159 higher low region is crucial for Aave's price to rebound and continue its upward trend. Maintaining above this level would be a positive technical signal, suggesting Aave could target prices in the $280- $350 range by mid-2025. This outlook is contingent on favorable macroeconomic conditions and ongoing adoption in the decentralized finance ecosystem.
Aave, with its focus on crypto and decentralized finance, could see its token's price rebounding if it holds the $159 support zone, which is conducive to the continuation of its bullish trend. This higher low region, signaled by value area low, high time frame support, and a key swing low, aligns with the potential for prices to reach between $280 and $350 by mid-2025, as suggested by analysts. However, a rejection at the current resistance and a loss of the $159 support could tilt the structure bearish in the near term. In the decentralized lending market, the continuation of Aave's upward trend depends heavily on strong investor participation, reflected in above-average volume around the higher low zone.
