AAVE Coin :- AAVE is forming a classic cup and handle pattern after a 21% correction. Can it break out to $667? Explore the latest price analysis and key indicators.
AAVE Coin Faces Correction But Shows Bullish Potential
In the cryptocurrency market, major altcoins have struggled to sustain their momentum following the November rally. Factors like rising Bitcoin dominance, uncertainty regarding U.S. tariffs under Donald Trump, and the influx of new memecoins by political figures have contributed to market hesitation.
Aave (AAVE) has not been immune to this downtrend, experiencing a 21% correction in the past 30 days. However, a bullish cup and handle pattern is emerging, signaling a potential rebound.
Technical Analysis: Cup and Handle Pattern Forms on AAVE Coin Chart
On the weekly chart, AAVE surged 150% in November, jumping from a low of $125 to a peak of $399 on December 16. However, after facing resistance at the neckline, the price entered a correction phase, forming a cup and handle pattern.
After being rejected at resistance, AAVE declined to a low of $203, finding support at the lower boundary of the handle. It has since rebounded to around $253, indicating the handle formation is nearing completion.
The MACD indicator shows weakening bullish momentum, yet the MACD lines remain above zero, suggesting AAVE is still in an overall uptrend. The fading histogram indicates consolidation might continue before a decisive breakout.
If AAVE successfully breaks the neckline, it could target an upside move toward $667, aligning with the cup’s depth.
What’s Next for AAVE Coin?
AAVE’s price trajectory will largely depend on Ethereum’s movement and Bitcoin dominance. While further consolidation is possible, a breakout above resistance could ignite a strong rally. Traders should watch for confirmation before entering positions.
FAQs
1. What is a cup and handle pattern in cryptocurrency trading?
A cup and handle pattern is a bullish chart formation indicating a potential breakout after a period of consolidation.
2. What is AAVE’s next target price if it breaks out?
If AAVE successfully breaks the neckline resistance, it could reach an upside target of $667.
3. How does Bitcoin dominance impact AAVE’s price?
A rise in Bitcoin dominance often leads to reduced capital flow into altcoins, affecting their price performance.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. Always conduct thorough research before making any investment decisions.
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