Why is AAVE Price Pumping?

The market as a whole is positive, making AAVE one of the top-performing cryptocurrencies right now. In the past day, its price has risen by 22.16%

Aave (CRYPTO: AAVE) price is up 22.16% over the past 24 hours. It has risen by 110% over the past seven days. The total crypto market volume over the last 24 hours is $163.35 billion, a 25.05% increase.

Aave price has surged sharply on Monday, making it one of the top-performing cryptocurrencies. The spike in activity could be attributed to several factors, including chart patterns and the aftermath of the US election.

The bullish momentum for Aave can be observed in a technical breakout spotted on its price chart. A recent chart shared by the analyst highlights Aave forming a bullish pennant, which is a continuation pattern often linked to potential upward price movement.

This pattern, characterized by converging trendlines, typically signals a period of consolidation. However, if the asset breaks out from its resistance line, it can indicate further upward price movement.

In Aave’s case, the upper trendline has acted as resistance, limiting price gains since August. A breakout from this line could suggest a continuation of Aave’s upward trajectory.

The probability of continuous higher momentum is also reinforced by the lower trendline, which has consistently offered support.

Volume Surge, Increased Market ParticipationA key aspect to consider is the substantial increase in trading volume. The surge of 201.52% reflects heightened market interest and buying momentum, both of which are essential in confirming the validity of the breakout.

According to the analysis, this volume-backed breakout enhances the chances of an extended bullish move, with projections indicating a potential 24.52% price increase in the short term.

With the breakout supported by volume, Aave’s next price target, based on the expected trajectory of a bullish pennant breakout, could be around $210-$215. If Aave manages to achieve this target, it may continue to attract more buyers, further boosting its price trajectory.

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Key Price Targets, Support LevelsFollowing the breakout, Aave’s previous resistance line will now act as immediate support. This level is crucial for sustaining the uptrend, as holding above this line would validate the breakout.

Analysts are eyeing $210-$215 as the next resistance zone, a level that could serve as a short-term price target if buying interest persists.

Should Aave achieve this target, the next significant resistance may appear around its historical highs. The bullish momentum is currently strong, and maintaining levels above the breakout trendline will be pivotal for further growth.

Market participants will be keeping an eye on this level to confirm whether the bullish trend remains intact.

While the short-term target suggests a possible 24.52% gain, the analysis hints at the potential for a broader rally.

If the current breakout holds over the longer term, the analyst envisions a possible 2x increase, indicating optimism about Aave’s growth prospects. However, this projection hinges on sustained market momentum and broader crypto market conditions.

With Aave emerging as one of today’s top-performing assets, its current breakout and rising trading volume underscore strong market interest.

The coming days will reveal whether Aave’s price can maintain its vigor and potentially achieve new highs, bolstered by technical support and a favorable market environment post-election.

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