Aave (AAVE) has ranked among the top 5 best performing major crypto assets in the last two weeks. The coin has been on a major uptrend and in fact, it managed to break above $200 for the first time this year. So, where does the price action go from here? Here are some pointers to keep in mind:
After surging towards $230, AAVE appears to have lost its upward momentum.
The coin has largely remained in sideways trading for the last two days
AAVE was also rejected at the crucial $241.8 resistance level
Data Source: Tradingview
Can Aave find momentum?
The rejection at $241.8 was a big letdown for bulls who had managed to push AAVE quite high in the last 14 days. In fact, the coin has since retreated and is trading at around $231. We expect bulls to try and breach the $241.8 price in the coming days.
Although this will be difficult given the current stagnation in the price action, it is not impossible. A break above $241.8 will push AAVE further above $261 before any resistance. This will represent a 15% upswing above the current price.
Despite this, there is still a very big risk of retracement. Remember AAVE has largely trended upwards for the most part of March. A correction is, therefore, due and as such, we could see a strong retracement that takes the coin back to $210. However, if the price action stays above $230, more upside will come.
Why should you consider AAVE now?
We still think that there is a little bit of upward momentum left for AAVE. In fact, a sharp rise toward $260 is still possible. Buying now will therefore give you a chance to make back at least 20% in returns.
But the risk of retracement on the downside should not be ignored. If bulls cannot keep the price above $230, then you should probably wait for it to fall back to $210 or thereabout before buying.
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