AAVE Price Analysis: Despite Market Uncertainty, AAVE Surges 10%, Bucks the Trend — What's Next?

Despite the prevailing uncertainty and fear, AAVE has shown its resilience, surging by an impressive 10% in 24 hours and defying the odds.

Key Takeaways

AAVE surged by 10% in 24 hours, bucking the broader market's downturn and displaying resilience amid prevailing uncertainty.

The DeFi token rose from $96 to a peak of $108 on Aug. 14, eventually closing the day at $106.

Despite losing some momentum, AAVE continues to defy the market's bearish trend.

Our analysis suggests that AAVE could be completing its second sub-wave from the higher degree five-wave impulse to the upside.

If this scenario holds, the rise from Aug. 12 could be the starting wave 3, potentially driving the price to a higher high of $143.

After surging to a yearly peak of $155 on March 12, the price experienced a corrective stage, dropping to $72 by April 13 and later retesting this level on July 5.

The correction unfolded within a descending triangle and was part of a five-wave ABCDE pattern. A breakout above this triangle signaled the start of a new bullish phase.

As observed in our previous analysis on Aug. 2, AAVE has been making higher highs, surpassing key levels from previous corrections.

We considered two possibilities for the market's direction:

A bullish scenario, where a new five-wave impulse could propel the price above $120 and towards $140.

A more conservative scenario, where the current uptrend could be a lower-degree B wave, leading to a temporary dip to $100 before a more significant upward move.

On Aug. 12, AAVE fell to $90, finding support at the 0.5 Fibonacci level and reversing course.

This upturn validated our second outlook, shifting our projection to the right on the chart.

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