Prominent analyst More Crypto Online has shared some insights about AAVE’s price on X (formerly Twitter) as the token continues its strong price movements.
The analyst noted that AAVE’s price should hold the $218 support level during its pullback. The tweet suggests that the $270-$280 range may have concluded or is nearing completion, setting the stage for the next phase of price action.
What you'll learn 👉
AAVE Chart Analysis: Elliott Wave Analysis and Current Price Movements
The chart associated with the analysis utilizes Elliott Wave Theory to track AAVE’s price structure. The current movement appears to be part of a five-wave impulse pattern. Wave (3) has likely peaked near the $270-$280 range, driven by strong bullish momentum. This sets the stage for wave (4), a corrective phase, with potential support levels aligning with Fibonacci retracement zones.
Key retracement levels for wave (4) are at 38.2%, 50%, and 61.8%, with $218 as a key figure for support. If the price holds above $218 during this correction, it would confirm the structure’s validity and prepare the token for a move into wave (5). Analysts project wave (5) could drive the price toward $300-$400, marking a continuation of the bullish trend.
The Importance of $218 Support Level
The $218 level is identified as a pivotal area for AAVE’s ongoing price trajectory. Falling below this level could lead to further corrections, potentially testing lower Fibonacci retracement levels at $200 or $190. However, if the price holds above $218 during wave (4), it could confirm the bullish structure and provide a foundation for wave (5) to push the token higher.
Wave (4) corrections typically align with the Fibonacci retracement zones, offering traders a chance to accumulate before the price resumes upward momentum. This wave is considered a necessary cooling-off phase after the steep ascent of wave (3), which peaked at approximately $270-$280.
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Bullish Momentum and Price Targets
The steep ascent during wave (3) reflects strong bullish momentum, with wave (5) expected to build on this foundation. Should wave (5) materialize, projections suggest price targets around $300 to $400, depending on market dynamics.
More Crypto Online emphasizes the importance of current support levels in maintaining the Elliott Wave structure. The next few days will likely determine whether AAVE’s price can sustain its bullish momentum and deliver on the high expectations of traders and investors. If $218 holds firm, it could mark the beginning of wave (5), potentially propelling the token to new heights.
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