In the world of financial markets, where the price fluctuates between highs and lows, there are always pivotal moments that attract attention. $AAVE is one of those assets making steady steps toward new highs, reflecting the strength of momentum that could be the beginning of a larger upward wave.
It was not just a currency experiencing a slight rise, but it had a significant increase in momentum, as the price moved from its lowest point of $114.05 to its highest point of $223.31, marking a massive increase of 95.7% in just the last month. This significant rise is not a coincidence but a result of several technical and psychological factors driving the market to rise in this manner.
The most striking aspect of this rise is the stability shown by the $219 level. With no signs of a slowdown, this price could be the starting point for another upward wave on the way.
💥 In-Depth Technical Analysis:
1. Upward Momentum:
An undeniable strength after jumping from low levels in a short time. This movement represents a strong upward momentum supported by an increase in trading volumes, indicating that the market is reacting positively to this price increase.
Although the price has seen some minor pullbacks, it has remained within a strong support range around $219, reinforcing the strength of this level as both psychological and technical support.
2. Technical Indicators:
The RSI (Relative Strength Index) indicates that it has not yet reached overbought territory, as it is still hovering around level 68. It has not exceeded 70 yet, indicating that there is significant room for upward movement if the momentum continues.
The MACD shows a strong positive crossover on the hourly time frame, enhancing the likelihood of continued upward movement. The green bars also show expansion, indicating the persistence of upward momentum.
Bollinger Bands are gradually widening, indicating that a significant movement has not yet begun, but is on the way. This suggests that the market may experience greater price volatility soon, with increased trading volume.
3. Technical Breakouts:
The level of $219 has been tested multiple times, but the market has risen again each time. This movement can be considered a false exhaustion of resistance. This indicates that traditional resistance may be on the verge of collapse, opening the way for further rises.
📈 Trading Setup:
• Entry Area:
Between $218.00 and $221.00
After establishing a level of $219, this area is considered an ideal entry point. If the price continues to hold above this level, we may witness a new upward movement that could reach higher areas.
• Profit Taking Point 1:
$234.00
With the current momentum, the price is expected to reach $234 as the first profit point. This point represents previous resistance levels and is likely to be the first target for investors.
• Profit Taking Point 2:
$248.00
If the market continues in an upward direction, the price could reach $248. This area represents historical resistance and has a significant impact in pushing the price upwards.
• Stop Loss:
Less than $210.00
It is important to closely monitor price movements, as a breakout of the $210 level could indicate a potential decline in momentum. A stop loss at this level is a good protection against any unexpected downward movements.
🧠 Psychological Scenario:
Trading is not just about purely logical decisions; it is also a psychological war taking place within the trader's mind. When dealing with assets like $AAVE, you are not just trading against the market, but against the fear of loss, doubt in available opportunities, and even an internal voice whispering to you: "What if I miss the train?"
But the truth is that the biggest opportunities come laden with fear. In moments of hesitation, events accelerate in the opposite direction, and you find yourself in a position where those who were brave entered first, while you watch others rush behind the fast train.
Market Psychological Momentum:
A wave of positive panic is sweeping over the market. These are the moments when everyone rushes to enter, but at that very moment, you might find yourself having entered early, before everyone starts to run.
💡 Future Expectations:
If the current momentum continues, the path for a larger upward wave towards $250. Monitoring trading volume at current levels will be vital in determining whether the movement will continue strongly or not.
