With a sudden recovery in the crypto market, the DeFi tokens are gaining traction as Bitcoin nears $91,000 mark. Among the top DeFi tokens, Aave, the 32nd biggest cryptocurrency, has increased by 25% in the past 24 hours.
Currently, it is trading at a market price of $218 and holds a market cap of $3.29 billion. Will this intense short-term recovery lead Aave to the $300 psychological mark? Let’s find out.
AAVE Price Recovery Aims $300 Breakout
In the weekly chart, the Aave price action showcases multiple lower price rejections from the 50-week EMA line. The weekly candles showcase dominance at the 61.80% Fibonacci level, with a lower price rejection from the 50% level.
The 50% Fibonacci level is priced at $165, while the 61.80% level is priced at $218. With the extremely long tail, the price action reveals strong bullish demand at lower levels.
The 50, 100, and 200-week EMA lines maintain a positive alignment despite the short-term pullback. However, the MACD and signal lines have given a negative crossover, with a surge of bearish histograms.
Nevertheless, as the token sustains above the 61.80% Fibonacci level, the chances of a new morning star pattern are significantly increasing. With a bullish reversal pattern, the uptrend in Aave will likely create a new 52-week high by crossing the $400 psychological mark.
However, the long-term price target remains optimistic, as the 78.60% Fibonacci level at $321 is the immediate key resistance.
Will The DeFi Token Cross $400?
As per the Fibonacci levels, a bullish continuation in the DeFi token will likely challenge the $528 resistance level, followed by a possibility to even reach the $1,000 psychological mark. On the flip side, the crucial support for the DeFi token stands at $165 followed by the $150 psychological spot.
Early PEPE Whale Acquires AAVE Worth Nearly $20 Million
Recently, with the sharp recovery of 25% in the past 24 hours, whales are lining up to acquire Aave. As per OnchainLens, a crypto whale has spent 1,928.86 wrapped ETH worth nearly $4 million to purchase Aave.
In this transaction, the whale acquired 20,511 Aave tokens at an average price of $193. Apart from the DeFi token, the wallet also has a history as an early PEPE whale holding 2.88 trillion PEPE tokens. This meme coin holding is worth nearly $20 million.
Also Read: Ethereum Price Dips to $2,000: Will the Downtrend Hit $1,500?
