AAVE/USDT Technical Analysis
Analyzing AAVE chart, we see that the long-standing downtrend since 2024 has seen another test, but no breakout to the upside has occurred yet. This trendline continues to act as a strong resistance, and the price has been rejected from that level. If a breakout above this trend occurs, a potential rise towards the $400 level could come into play from a technical perspective. However, until such a breakout happens, the medium- to long-term downward pressure should still be considered.In the shorter-term outlook, a rising wedge pattern is drawing attention. Rising wedges typically have a higher probability of breaking to the downside. If the lower boundary of this formation is broken, $268 and $254 would be the initial support levels. A stronger support area lies around $234.Daily closes above $306 are needed for the upside momentum to strengthen. In that case, $340 and $400 would become the next targets.
Summary:
- The 2024 downtrend is still acting as resistance.
- A rising wedge is in play, with a high risk of downside breakout.
- Upside breakout: Daily closes above $306 could target $340 – $400.
- Downside breakout: $268 – $254 – $234 support zones come into focus.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
