Bitcoin btc
$ usd

AAVE Breaks out From 37-Day Descending Resistance Line

2 mins
Updated by Geraint Price
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In Brief

  • AAVE broke out from a descending resistance line.
  • It could be trading inside a short-term ascending parallel channel.
  • AAVE is following a longer-term descending support line.
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Aave (AAVE) has been increasing since bouncing at a descending support line on June 18. However, it has yet to confirm a potential bullish trend reversal.

AAVE has been falling alongside a descending support line since Dec. So far, the line has been validated five times (green icons).

During the two most recent touches on May 12 and June 16, the daily RSI generated a very significant bullish divergence (green line). This led to an ongoing short-term bullish reversal. Since then, the daily RSI has moved above 50 in what is considered a sign of a bullish trend.

Daily AAVE movement
AAVE/USDT Chart By TradingView

Short-term movement

The six-hour chart shows that the price had been falling below a descending resistance line since the beginning of June. After the June 18 reversal, the price made two unsuccessful breakout attempts (red icon). It finally broke out on July 4.

The breakout led to a high of $83.20, but the price was rejected by the 0.5 Fib retracement resistance level and has been falling since.

AAVE Breakout
AAVE/USDT Chart By TradingView

The two-hour chart shows that since the aforementioned June 18 bottom, the price has been trading inside an ascending wedge. The wedge is considered a bearish pattern, meaning that an eventual breakdown from it would be expected. 

So, the six- and the two-hour charts provide conflicting signs due to the breakout from a resistance line and presence of a bearish pattern.

AAVE Short-term wedge
AAVE/USDT Chart By TradingView


The AAVE/BTC movement is very similar to its USD counterpart, but slightly more bullish. The main reason for this is that the price has broken from a longer-term descending resistance line, which had previously been in place for 81 days. Additionally, it has reclaimed the ₿0.0034 horizontal area and validated it as support (green icon).

Furthermore, the daily RSI is above 50, supporting the continuation of the upward movement. If the increase does continues, the next closest resistance would be at ₿0.0034, created by the 0.618 Fib retracement resistance level.

AAVE/BTC Breakout
AAVE/BTC Chart By TradingView

For Be[in]Crypto’s previous bitcoin (BTC) analysisclick here.


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...