The AAVE token trades between the support at $ 62 and resistance at $ 83.
The price broke a short term descending resistance line.
The AAVE / BTC pair follows a descending resistance line.
Aave (AAVE) price is currently looking to break above the $ 83 resistance zone. If it succeeds, it would push the price up to a new record high.
Although a short term retracement may take place, the AAVE will likely continue to rise.
Aave is approaching its record high
The AAVE price has been rising from its low at $ 24.66 on November 5. It peaked at $ 84.71 on November 20, narrowly missing its all-time high (ATH) before declining sharply.
That said, this decline only served to validate the $ 62 area as support, knowing that price created a very long upper wick and has been rising since then.
Technical indicators are bullish and support the continuity of the upward movement. If price were to break above the resistance at $ 83, then there would be virtually no resistance to the high of $ 90.83.
Cryptocurrency trader @TradingTank pointed to an AAVE chart, saying the price will soon hit a new high.
While this is a possibility (also supported by technical indicators), price has yet to break above the $ 83 area which is needed for a new all-time high.
The shorter term chart for Aave shows that price has breached a descending resistance line. That said, it generated considerable bearish divergences in the RSI like the MACD.
In addition, the price has not retested the passing level of resistance since its advance.
Thus, a short-term decline towards the $ 68 area seems plausible, before a potential resumption of its upward momentum.
AAVE / BTC shows price is following a descending resistance line from its August 23 high.
At the time of writing this analysis, the line coincided with the resistance at 0.0045₿, which makes it all the more important. Passing over this area would likely result in a very steep rally.
Technical indicators are bullish, supporting the possibility of a potential rise above resistance.
Thus, after having moved in a range going from 0.0045 0,00 to 0.0032₿, the price of the AAVE token will probably cross above this resistance line.