AAVE has recorded a sharp surge of over 20% in recent sessions, gaining strong bullish momentum as it rallied from around $210 to $265.80. The surge captured traders’ attention as the asset quickly broke through multiple resistance levels.
The latest daily candle alone shows a gain of 7.28%, with AAVE climbing from $247.77 to a high of $270.43 before settling at $265.80. As a result of its spike, the token is now above its 20-day simple moving average of $210.07, confirming the strength of its upward trend.
Bollinger Bands indicate increased volatility, with the price pushing past the upper band at $267.06. At $153.09, the lower band demonstrates the broad trading range AAVE has covered. The conspicuous distance between the bands indicates that markets are active and have a significant trend.
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Technical Indicators Highlight Overbought Conditions, but Momentum Remains Strong
The daily Relative Strength Index has surged to 75.61, signaling that AAVE is in overbought territory. This technical condition suggests the potential for near-term consolidation or a pullback, as some traders may choose to take profits after the rapid ascent.
Still, bullish sentiment exists as buyers drive the market higher by forming new highs and successive higher lows. The resistance level for traders now ranges between $270 and $280.
Source: Tradingview
The wick in today’s candle suggests that selling could be occurring in the market’s recent highs. The noticeable rise in trade activity close to the zone suggests a temporary halt in momentum. As long as trading volume continues to support the price levels, the market is expected to go higher.
The favorable trend will be maintained unless the price is below $240 or $210. If trading sentiment among buyers stays high above these levels, the positive trend is more likely to continue.
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