- High trading volume and strong momentum pushed the Aave cryptocurrency higher.
- The token is poised to surpass the psychological $200 level soon.
Aave (AAVE) is up 44.9% since the opening bell on Tuesday, October 5 after testing the 50% retracement level at $125 a day ago.
Previous AMBCrypto reports have highlighted that price action on higher time frames means AAVE’s bias is strongly bullish.
However, the swiftness of this bullish response was not expected.
The DeFi sector as a whole appears to have been boosted for the next four years by a US president who supports cryptocurrencies, as DeFi tokens have seen gains of over 30% in recent days.
Aave breaks structures in large quantities.
Source: AAVE/USDT on TradingView
A close of the day’s trading above $180.74 would indicate a breakdown of the bullish market structure on the AAVE daily chart.
After retracing towards $125 since mid-September and failing to rebound while Bitcoin (BTC) has been climbing higher, this breakout could prove the HODLer’s conviction.
The Awesome Oscillator showed that momentum was weakening due to the altcoin’s downward momentum prior to the recent rebound.
Another encouraging sight was OBV knocking on the door of the region’s highest prices since September.
DMI showed a strong upward trend underway, with both ADX (yellow) and +DI (green) above 20. From a price action perspective, the next take profit targets are $245 and $290.
Integration steps for Aave encryption?
Source: Coinglass
AMBCrypto found that a retracement to $125 collected a significant amount of liquidity in the 3-month lookback heatmap. $103 pocket untested.
AMBCrypto’s 3-day chart survey shows that liquidity at $130 has become thicker even as the price surges.
Is your portfolio green? Check out the Aave Profit Calculator
Price action late on November 5th prompted more and more traders to buy. The quick move beyond the two-month high created new liquidity bands at $167, $179, and $191.
The $179 and $191 regions may form a short-term range, giving the Aave cryptocurrency a chance to recover before the next impulse moves higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.