Aave (AAVE) Rebounds After Market Turbulence, Eyes Key Resistance Levels
- AAVE rebounded from a low of $191, now trading at $211.02 with a 6.93% daily gain.
- The token remains in a five-wave uptrend but must hold key support at $107 to sustain bullish momentum.
- A break below support could invalidate the uptrend, exposing AAVE to further downside.
- Traders are watching closely to determine if the recovery signals a lasting uptrend or a temporary bounce.
Aave (AAVE) recently faced a sharp decline, mirroring the broader market sell-off that triggered fear among investors and led to widespread losses across altcoins. The decentralized finance (DeFi) token dropped to a recent low of $191 as market sentiment weakened. However, as the market found stability and regained momentum, AAVE also initiated a recovery, attracting renewed attention from traders.
At the time of writing, the token is priced at $211.02, reflecting a 6.93% increase over the past 24 hours. Its 24-hour trading volume stands at $714.15 million, with a market capitalization of $3.18 billion, holding a 0.11% market dominance.
Potential Upside, But a Critical Support Level Looms
According to More Crypto Onlines analysis, AAVE appears to be in wave iv of a larger five-wave uptrend, which originated in 2022. This suggests the token remains in a bullish cycle, provided key support levels hold. However, the risk of a deeper correction cannot be ignored.
AAVEs crucial support rests at $107, a break below this level could invalidate its bullish structure, potentially exposing the token to further downside. If the token fails to maintain its long-term support, it could follow a pattern seen in several altcoins: a three-wave top formation, which often leads to prolonged struggles in reclaiming previous highs.
Whats Next for AAVE?
While the recent price surge signals a recovery, AAVE must sustain its upward momentum to confirm a bullish continuation. If buyers maintain control, the token could attempt to reclaim higher resistance levels. On the flip side, a loss of support could see the token revisiting lower price zones, challenging investor confidence.
As the market remains volatile, traders will be watching the tokens price action closely to determine whether this rebound is the start of a sustained uptrend, or just a temporary relief before further downside.
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Read more: https://www.tronweekly.com/aave-aave-rebounds-after-market-turbulence-eyes-key-resistance-levels/
Text source: TronWeekly
