AAVE’s Supertrend Signal: Will It Spark a 870% Rally? 💸🚀

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Key Takeaways 🧠

AAVE shows bullish potential with a ‘supertrend’ buy signal, cup and handle breakout, and falling exchange reserves. Clearing $330–$345 resistance could trigger a rally toward $360 despite sell-side pressure.

Aave [AAVE] just flashed a weekly ‘supertrend’ buy signal—the same one that preceded rallies of 870% and 400% in earlier cycles. 🎭

Hovering near $318 at press time, AAVE appeared to be following a familiar bullish path, especially as this signal emerges near a multi-month breakout zone. Historically, this indicator has marked the start of major upside movements. 🧨

Therefore, its reappearance at this crucial point adds weight to the bullish narrative, potentially positioning AAVE for another parabolic surge if buyers sustain pressure beyond local resistance levels. 🚀

Will AAVE’s textbook cup and handle pattern fuel the next breakout?

AAVE recently confirmed a textbook cup and handle pattern, typically seen as a reliable bullish continuation signal. 🧠

The breakout occurred above the $308 neckline, with press time price action steadily approaching the next resistance at $339. 🧨

This structure often precedes sharp upward movements, especially when accompanied by increasing volume and momentum. Moreover, the pattern’s symmetry and duration reflect strong accumulation phases. 🎯

Therefore, the formation provides a technically solid foundation for further upside, particularly if AAVE manages a decisive push above the $339 resistance level. 🚀

Is the 3.79% drop in exchange reserves a bullish sign?

On-chain data revealed that AAVE’s Exchange Reserve in USD value has declined by 3.79%, and was sitting at $754.37 million, as of writing. 🧨

This shift suggests a reduction in immediate sell-side pressure as investors move assets away from centralized exchanges. 🕵️‍♂️

Historically, such outflows precede price appreciation, since available supply for liquidation shrinks. 🧠

While this alone doesn’t confirm upward momentum, it reinforces the bullish setup provided by the technical indicators. 🎯

Thus, the drop in exchange reserves aligns with the ongoing narrative of investor confidence and reduced short-term selling intent. 🚀

Could persistent sell dominance slow AAVE’s momentum?

Despite bullish technical setups, the Spot Taker CVD over 90 days remained in a “Taker Sell Dominant” state at press time. 🧨

This shows that market participants executing trades aggressively still lean toward selling rather than buying. While the broader structure supports upside potential, this data highlights ongoing skepticism among short-term traders. 🕵️‍♂️

Therefore, buyers must overcome this pressure to sustain any breakout. 🎯

If sell-side dominance continues, it could temporarily suppress momentum, but a surge in buy volume could flip the trend and validate the bullish structure. 🚀

Will liquidation clusters above $330 and $345 trigger a breakout rally?

According to CoinGlass’ heatmap, there are dense liquidation clusters between $330 and $345, suggesting that many short positions are stacked in this zone. 🧠

These levels may act as temporary resistance, but a breakout above them could trigger a wave of liquidations. 🎯

Such events often accelerate price movement due to forced buybacks. Therefore, if AAVE clears this range, it could rapidly ascend toward $360 or higher. 🚀

Watching how the price interacts with these zones will be key to confirming breakout strength. 🧨

In summary, AAVE’s alignment of bullish indicators—from the SuperTrend buy signal to the cup and handle breakout—signals strong upside potential. 🎯

However, resistance around $330–$345 and prevailing sell-side pressure demand caution. If buyers maintain momentum and clear key levels, another explosive rally could be underway. 🚀

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2025-07-19 20:14