Per crypto analyst Rekt Capital, AAVE has struggled to close above a critical resistance level of $146 on the weekly chart. In his recent analysis shared via X, the analyst emphasized that this resistance level is crucial for AAVE’s breakout potential.
Despite several attempts, AAVE has not been able to breach this zone, suggesting that bullish momentum is currently insufficient to drive a decisive move upward.
What you'll learn 👉
AAVE Failed Breakout and Crucial Support Zones
Rekt Capital’s chart focuses on AAVE’s resistance and support levels. The chart indicates that AAVE tested the $146 resistance multiple times but failed to close above it. This resistance zone, along with another key level at $138.59, has historically posed challenges for the token.
Failure to secure a weekly close above $146 implies AAVE is not yet ready for a breakout. On the downside, the $111.97 support level remains crucial for maintaining the current structure.
A breakdown below this point could signal further downside risk. Another support area between $74 and $90 has provided a demand zone for AAVE in recent months, offering a potential entry for bulls if the price retreats.
Consolidation Phase and Broader Market Context
AAVE has been consolidating around $110 and $146 after a prolonged downtrend from its 2021 peak. The token’s price dropped from over $700 to its current levels. This consolidation phase is critical for determining AAVE’s medium-term direction.
A weekly close above $146 could lead to a bullish breakout, while continued rejections might push the price toward lower support zones. According to Rekt Capital, AAVE has created a falling wedge pattern, which usually denotes a bull market continuation.
However, he advises prudence as the price is still trapped inside the consolidation zone in the absence of a clear breakout.
Doge2014 raises 450K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +Read also: Fantom (FTM) Price Surge: Analyst Predicts Potential 2x Run
Potential Scenarios and Price Targets
For AAVE to initiate a bullish breakout, a weekly close above $146 is necessary, with further confirmation coming from a push past $155 to $160. Should these levels be cleared, the next resistance target would be around $200.
Conversely, if AAVE breaks below $111.97, it may retest the lower support zones between $74 and $90. Further weakness could open the possibility of a drop to $52, as indicated on the chart shared by Rekt Capital.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
