AAVE Price Eyes $850 with Rounding Bottom Reversal

The crypto market shows a neutral outlook during Tuesday's U.S. market session as Bitcoin seeks stability above $100k.

As the U.S. market session unfolds on Tuesday, the crypto market maintains a neutral stance with Bitcoin striving to stabilize above $100k. Amidst the market consolidation, the AAVE price has recorded an exceptional surge of 21% to reach $366, largely driven by increasing whale activity. This rally is contributing to the formation of a massive reversal pattern, suggesting the potential for a substantial upward rally.

According to data from Coingecko, the AAVE coin boasts a market capitalization of $5.5 Trillion, and its 24-hour trading volume is pegged at $2.9 Billion.

Key Highlights:

Aave Whale Transactions Hit Highest Levels Since 2022

Aave, a leading decentralized finance (DeFi) protocol, has once again piqued the interest of deep-pocketed investors, or “whales.” Data from IntoTheBlock reveals that the past week has seen an impressive 3,310 transactions exceeding $100,000 in value, marking the highest weekly volume of such transactions since 2022.

This surge in activity highlights the participation of large-scale investors, indicating strong confidence in Aave’s ecosystem. Historically, periods of whale accumulation have coincided with sustained uptrends.

AAVE Price Poised for $850 Target as Rounding Bottom Reversal Forms

Over the last three weeks, the AAVE price has witnessed a steady rally from $151 to $365, marking a growth of $140. This recovery trend has seen the AAVE price successfully reclaim key horizontal chart levels such as $197, $261, and $350.

Analyzing the daily chart, we can observe the formation of a crucial reversal pattern known as the rounding bottom. This chart setup resembles a ‘saucer,’ indicating a major trend reversal as the price passes through 3 distinct phases: a downtrend, a prolonged consolidation, and a sustained recovery.

The pattern is further highlighted by a sharp uptick in key daily EMAs (20, 50, 100, and 200), indicating high momentum in the rally, setting the stage for the next breakout.

With sustained buying pressure, the AAVE price could rally another 22% to breach the neckline resistance at $448. A potential breakout will amplify the buying pressure, targeting the $850 barrier, indicating a potential growth of 88%.

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