Aave (AAVE) Price Analysis: Bulls Aim to Flip $163 Resistance to Resume Uptrend

Following the recent daily price actions from where the market picked up at $70, Aave has recovered well and is now footing another major buy to continue

Aave (CRYPTO: AAVE) price picked up on Monday evening as demand for cryptocurrencies rose. The token was trading at $158, which was substantially higher than the weekend low of $148.

Still, the price remained below the key resistance level at $163, a price that Aave breached earlier this week.

Aave price strong

Aave price has recovered in the past few days as investors cheered the recent developments in the DeFi sector. For example, the total value locked (TVL) in DeFi has risen to more than $100 billion.

At the same time, there are hopes that the upcoming Federal Reserve decision will be positive for cryptocurrencies.

On the 4-hour chart, the Aave price formed a bullish pennant pattern last week. In technical analysis, a pennant is usually a bullish continuation pattern.

It is characterized by a period of consolidation that follows a strong directional move. The upper and lower trendlines of the pennant converge as the price moves within a narrowing range.

The breakout from a pennant pattern typically occurs in the direction of the initial price movement that preceded the pennant formation.

In the case of Aave, the breakout is expected to be to the upside, considering the strong bullish momentum that drove the price to $163 before forming the pennant.

If this breakout occurs, the next key level to watch will be at $181, which was the highest level in August. Above this level, the next resistance will be at $199. On the flip side, a failure to flip the $163 level could lead to another drop, targeting the $135 support.

Aave price analysis

4-hour chart

Aave price formed a bullish pennant pattern last week, indicating a potential breakout to the upside.

The breakout from the pennant pattern was confirmed on Monday evening.

If the breakout continues, the next key level to watch will be at $181, which was the highest level in August.

Above this level, the next resistance will be at $199.

On the flip side, a failure to flip the $163 level could lead to another drop, targeting the $135 support.

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