AAVE 2.5 Months Trendline Breakout Calls for a Reversal
AAVE was the best performing crypto in the last 24 hours, gaining almost 13%. AAVE's gains are no coincidence as they came as a result of a classical trendline breakout signal that has the potential to signal a bottom.
Trendline Breakout
This is a fairly notable trendline because of its age and because it connects all the peaks printed in 2022. The breakout can signal a major shift in the market sentiment, but the bulls still need to clear the next major hurdle that comes around the $150 – $159 SR zone.
RSI Momentum
Yesterday was a big reversal day that was followed by a break of the Relative Strength Index (RSI) oscillator above the 50 mid-level.
In mid-January and at the beginning of February, we had two failed attempts to break above the RSI 50 level. However, the sizeable bullish candle printed yesterday can signal that the outcome would be different this time.
Looking forward: If the bulls manage to clear the $150 big psychological number, it will open the door for a possible test of the 0.382 Fibonacci retracement level, which perfectly aligns with February's peak.
Ideally, we want the RSI oscillator to hold above the 50 mid-level to increase the chance of the current rally to extend.
