AAVE Price Heading Fast For Crucial Breakout

The AAVE price has sustained a strong rally over the past week, resisting the broader market's supply pressures. Despite Bitcoin's price pullback from $70

Cryptocurrency prices have been subjected to immense selling pressures this week following Bitcoin’s price pullback from highs of $70,000 on Monday. The broader market’s supply pressures have been felt across the altcoin market as prices dropped sharply. However, amidst these supply pressures, AAVE has managed to sustain a strong rally over the past week.

Despite Bitcoin’s price pullback from $70,000 on Monday, which reintroduced supply pressure across the altcoin market, AAVE has remained resilient. The asset is only an 8% increase away from achieving a breakout.

This second major reversal from $71 within three months highlights investors’ interest at dips and reveals a double-bottom pattern. This bullish pattern forms when prices rebound from nearly the same support level, developing a ‘W’- like structure.

The momentum indicator Relative Strength Index (RSI) supports the bullish narrative with a higher low formation, indicating rising demand pressure at the bottom.

Moreover, the 50-day Exponential Moving Average (EMA) on the verge of crossing above the 200-day EMA would project a buy signal. The altcoin is trading above daily EMAs (20, 50, 100, and 200), indicating strong bullish momentum.

Today, the AAVE price trades at $106.5 with an intraday gain of 1.2%. Consecutively, the market cap jumped to $1.58 Billion.

AAVE Price Could Rise 8% For Next Resistance

Under the influence of a double bottom, the AAVE price could rise 8% to challenge the next resistance of $114.7. The potential target for a double bottom pattern is determined by measuring the distance between the support level at the bottom and the neckline. This distance is then added to the breakout point to estimate the distance for the upcoming rally.

If the buyers flip this resistance into potential support, the post-breakout rally may target a 38% rally to $157.

The potential rally may witness in-between resistances at $134 and $153.7.

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