A renowned cryptocurrency strategist believes that altcoins in the decentralized finance (DeFi) space look strong compared to the US dollar and Bitcoin (BTC).
DeFi lending platform Aave (AAVE) is flashing several bullish signals on the 8-hour chart, pseudonymous analyst Bluntz told his 308,500 followers on social media platform X.
“AAVE is one of my favorite alternatives here. Deleting ABC from the 8-hour chart and 5 waves within the C wave shows an 8-hour bullish divergence brewing.
I think it’s a T1 (primary) setting.”
Bluntz follows the Elliott Wave theory, which states that bullish assets tend to witness a five-wave surge after completing an ABC correction. According to the trader’s chart, he appears to be suggesting that AAVE has completed the ABC retracement with a bullish divergence to support his position on a potential reversal.
A bullish divergence is generally considered a reversal signal, indicating that an asset’s momentum is rising even though its price is falling or moving sideways.
Bluntz appears to be predicting that AAVE will surge to $460 for the next round of upside, which represents a potential upside of around 56%.
Looking at AAVE/BTC, Bluntz says the pair is also showing a similar setup, suggesting the coin is poised to outperform Bitcoin.
“AAVE/BTC looks the same. It has a good 8-hour bullish divergence on the higher time frame.”
As of this writing, AAVE/BTC is trading at 0.003034 BTC, worth $294.71.
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