Exciting developments are happening in the cryptocurrency markets, especially with the upward price movement of BTC. One of the cryptocurrencies we recently evaluated was AAVE Coin. No one expected it to surpass the $86 mark so soon when we mentioned its potential to exceed $86. So, what is the next target for the DeFi star?
After 500 days, the AAVE Coin price closed above the decreasing trend line and reached $86 today. While the price had retreated to $83 while BTC was holding at $30,000, it managed to overcome the resistance. This week, as US companies continue to release their earnings reports, it is necessary for the cryptocurrency to maintain its positive divergence from the stock markets.
The readings on the weekly chart indicate that the breaking of the decreasing trend line, which caused the price to reach the bottom of $47, has occurred. The price, which had previously attempted to surpass this region four times, finally succeeded. If we can see closures above the $87 resistance today, it can open the door to much higher peaks.
Crypto analysts continue to expect an upward movement. Crypto Tony and Eliz883 wrote that a strong bullish movement is about to begin for the DeFi altcoin with the breaking of the trend line. The third analyst, WolrdOfCharts, implied similar views to other analysts, stating that the price is focused on triple-digit targets.
The weekly RSI trend line supports the breaking. The RSI data, which has surpassed the neutral zone, reflects the increasing demand from investors and suggests that the breaking may have initiated a long-term upward movement. If the expected price increase continues, triple-digit targets will be reached.
The level of $110, which is approximately 30% above the current price, can be targeted with closures above the $86 resistance. At the time of writing this article, the price of Bitcoin is at $30,600. Despite the negative opening of the stock markets, BTC did not experience a significant loss.
So what if the AAVE Coin’s upward expectation reverses? If the weekly closing is not close to the current region and BTC is making one of its previous false hikes, the price can drop by 17%. This would mean testing the $68 region.
The cumulative value of cryptocurrencies has exceeded the $1.15 trillion support. However, the volume is still at the $40 billion level and needs to increase. Nevertheless, according to the CoinShares report, there were net inflows into crypto funds last week as well. This can support the positive sentiment.