AAVE is currently trading at $124.93 after experiencing a slight dip in price of 0.65%, which is a minor decline in the last 24 hours, on Tuesday, February 17, according to CoinMarketCap.
However, the trading volume for AAVE has declined by 5.96%, currently standing at $419.75 million. The token still shows a 12.91% weekly gain, indicating sustained interest despite reduced activity.
Source: CoinMarketCap
AAVE Holds Critical Weekly Support
Crypto Patel, an analyst, highlighted that AAVE is currently trading at a critical level. Patel pointed out that AAVE is currently trading above a significant weekly trend line support at $90. This is a high-time-frame accumulation area.
AAVE has already recorded a significant 86% price correction from its all-time high. Analysts noted that such a price action is a rare occurrence in the crypto market that often appears only once in a cycle.
Currently, AAVE is also showing a clear sign of a liquidity sweep and a subsequent reaction from the multi-year price level from the multi-year ascending trendline.
According to Patel, AAVE is trading between descending resistance and ascending support. This is a clear indication that a breakout is imminent. Currently, the coin is also showing a clear sign of a developing pattern, which reinforces the ongoing accumulation phase.
AAVE Key Support and Bullish Levels Identified
Patel pointed to several key technical areas. He said that the area of $110 to $90 is the support zone. The token has to stay above $74 to maintain its bullish structure. If the price goes below that on a weekly basis, the entire structure will be invalid.
Source: X
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He further added that the rising trend line coincides with the 0.618 Fibonacci level, which indicates high demand. The price targets for the cryptocurrency, according to analysts, are $190, $345, $579, and $1,000, which represent major expansion levels from the current range.
Moreover, another analyst, Gain Muse, mentioned that there is strength in the coin price structure. He said that token is currently coiling under its ascending structural resistance.
This is an indication that the price is likely to move in the direction of the prevailing trend. The support zone in the price is currently at $122. The next area of interest in the price is at $135.
Source: X
Futures Volume and Open Interest Decline
CoinGlass data shows that the future volume is down by 6.23% and is currently at $276.68 million. The open interest is down by 4.38% to $214.07 million. The OI-weighted funding rate is currently at -0.0132%.
Source: CoinGlass
Cryptocurrency is in consolidation; however, analysts are waiting for a breakout in the compression pattern that will set the direction for the next trend move.
Also Read: Aave’s $6 Million Buyback Surge Sparks Fresh Upside Hopes for AAVE Token
