In this new crypto trend, let's take a look at the dynamics of the AAVE cryptocurrency (with its protocol of the same name). Having reached particularly high heights in 2021, the asset faced the beamarket but nevertheless, it recovers without great difficulty, the market still having a speculative interest in this asset. Today, let's analyze the configuration of this asset, the bias to have for the start of 2025 and the levels to watch carefully.
A Weekly Flip Setup
Price of AAVE against the dollar on the 1W time unit On the weekly scale, AAVE experienced a strong upward trend. After several months of lateralization (formation of a range zone), between $50 and $115, the asset managed to cross the resistance zone during the month of September. This dynamic allowed the asset to get ahead of the upward momentum of the market, making it one of the altcoins to have pushed upwards the earliest at the end of the year. Freeing itself from a technical zone at $253, AAVE found itself relatively quickly on the verge of 400 dollars (resistance zone shown in red). Marking a pause on a weekly scale, the current bias is strongly bullish on the asset, in a good configuration for the formation of new highs over the coming months. This dynamic will obviously depend on the ability of the asset to cross the current resistance zone. Over this period of time, AAVE will have to ensure that it remains above 250 dollars. Building support will allow the asset to gain support before starting to rise again, while remaining above the 13 EMA.
What media to monitor on AAVE?
AAVE price against the dollar on the 1D time unit When we look at the daily configuration of the asset, we still see a gradual rise towards 400 dollars with a double top on this resistance zone. In the event of a downward correction with sellers gaining strength over the coming weeks, what should we expect? Monitor with particular attention the technical thresholds which are: The support of the month of December around 298/300 dollars The old resistance which has become a support at 253 dollars
The November resistancewhich has become a support, around 200 dollars. Ideally, as mentioned previously, AAVE will not fall below 253 dollars. Although this would preserve the upward trend on a weekly scale, it would still be weakened on a daily scale. Thus, the most optimistic bullish scenario would be a rebound from support at $300which will allow the asset to continue recording ascending troughs and peaks. IF AAVE manages to return to the bullish path, watch for $530 as an intermediate threshold before returning to the ATH. AAVE allows you to participate in governance of one of the largest projects in decentralized finance, one which has demonstrated its effectiveness over time as well as a unrivaled security. During the coming weeks, particularly in January 2025, carefully monitor the support areas that have been identified. If this goes as expected, the bullish bias will be maintained, so it will only be a matter of time before a breakout upwards of 400 dollars.