Aave price edges closer to 40% rally due to Ethereum
- Aave price currently tangles with the $116 resistance level.
- Overcoming this key hurdle could trigger a 40% rally to $162 AAVE.
- A breakdown and flip of the $107 support level into a resistance barrier will invalidate the bullish outlook.
Aave (AAVE) price shows no signs of slowing down as it approaches a key weekly hurdle. If AAVE holders push the altcoin to flip this barrier into a support floor, they could be in for massive gains.
Aave price and its connection to Ethereum rally
With the full-blown start of the bull run, altcoins have generated massive returns for holders. Ethereum remained a slugger for quite some time but decided to rally a week ago as Bitcoin slipped into consolidation.
Since then, many Ethereum-related altcoins have pumped. The tokens that pumped initially were the newly launched altcoins like PYTH, PENDLE, and TIA, but slowly, older altcoins like UNI, ETC, AAVE are starting to play catch-up.
Crypto Twitter, more commonly known as CT, addresses this trading strategy as “ETH-beta,” which relates to altcoins that are associated with ETH.
Also read: “Bitcoin is so back” says Messari, as Inscriptions account for 21% of total fees in 2023
AAVE holders in for a treat
Aave price slipped below the $116 and $107 support levels on May 9, 2022. Since then, multiple attempts have been made to push the altcoin higher, but all were in vain. AAVE largely remained unfazed when Bitcoin price dropped on December 28, so the ongoing struggle to flip $116 into a support floor likely has legs.
A risky bet would be to accumulate AAVE at $107 should there be an intraday dip. This buying activity would be with the expectation that Aave price flips the aforementioned key hurdle.
In total, the rally from $116 to $162 would constitute a 40% gain.
AAVE/USDT 1-day chart
On the other hand, if Aave price breaks the $107 support level and flips it into a resistance level, it would be the first sign of bullish failure. In such a case, if AAVE breached the $95 support level, it would create a lower low and invalidate the optimistic outlook detailed above.
This development could also see Aave price crash 20% to collect the liquidity resting below the October 27 swing low at $75.
Read more: XRP price is coming up on an important directional breakout as Ripple fills multi-year triangle
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
