Aave jumps 20% in a steady bullish reversal
Aave has had its ups and downs over the last two months. However, during this period, the price action has largely remained below $50. Aave dropped significantly as well at the start of June. However, it has recovered and has now reclaimed several key support zones. Here are the highlights:
AAVE has broken two resistance zones in recent days.
The coin smashed past $61.25 and went on to also surge past $70.56.
Aave has also seen gains of 20% over the last 24 hours.
Data Source: TradingView
Why Aave’s momentum is strong?
Although in general, the crypto market has rebounded, Aave has just shot up. Aggregated gains over a 7-day period are now at 17%, one of the highest in the top 50 cryptocurrencies. But the bullish breakout appears to have a lot of room to run.
The coin is now above two critical support zones. We expect this run to continue and eventually settle above $80. After that, Aave will likely pull back slightly. But it will not lose the $60 support, at least not any time soon. The surge in Aave also comes against the backdrop of improving conditions in the market.
It seems investors are now growing confident that the US Fed and other major central banks are serious about tackling inflation. But despite this, there are still several economic risks at play that could sip capital out of the crypto market.
For now, it seems Aave is recovering some of the major losses seen last week. The coin will however need to break above $100 to erase the June collapse.
Can Aave hit $100?
At the end of May, AAVE was well above $100. But weakness in the market has put so much pressure on the DeFi token.
We don’t see it regaining $100 in the near term. In fact, a practical trading range over the coming few weeks will be between $60 and $80.