As the crypto industry experienced 3 out of 5 green days, the market has turned out to start trading in the month of October on a bullish note. Moreover, the crypto space has begun to gain momentum, giving hopes of a possible rally during the month.
The AAVE price has been trading with the support of an ascending trendline for almost a month. Further, it has started to form a range between $65.60 as its support and $72.87 as its resistance since the end of September.
The bulls attempted to break out of the range but failed, resulting in the Aave coin falling. The crypto lost momentum following the attempt and quickly broke down the support level. The AAVE crypto was then seen testing to break out of the range.
After a short breather close to the support trendline, the AAVE coin managed to bounce back in the range and is presently attempting a breakout. The possibility of a breakout declines as the price is rejected again at the resistance level.
The MACD displays a bullish convergence in its charts, indicating a bullpower in the market. Further, the chart shows a rising green histogram, indicating the possibility of a massive price action in the coming days.
In conclusion, if the market gains momentum, the AAVE price will continue to retest the resistance zone of $72.87. Further, if the Aave price manages to break out of the area, the coin will gain bullish momentum, resulting in the price continuing to rise and testing its upper resistance level of $75.72 this week.
On the contrary, if the bears come into power and a trend reversal occurs, the coin will lose momentum and plunge. Moreover, if the Aave price fails to hold its price above the support level of $65.60, then the coin will continue to fall and test its lower support level of $62.53 soon