AAVE has demonstrated impressive recovery potential as it climbs from a recent dip, raising the question: can it surpass $200 by the end of September? Recent price action and technical indicators suggest a promising uptrend for the DeFi token, which has rebounded strongly from a significant support level.

Bullish Reversal and Recent Rally

After a notable pullback that saw AAVE’s price drop to $118, the token has shown signs of a bullish reversal. This decline represented a 17% drop from its previous high of $144 within a week. However, the strong rebound from this support level indicates growing bullish sentiment.

AAVE’s price currently stands at $131.88, reflecting a modest intraday growth of 0.46%. Despite this recent increase, the token faces challenges in maintaining momentum as it tests resistance levels. The recent rally is marked by a series of bullish candles, culminating in a significant 6.61% gain on the previous day, demonstrating robust buying pressure.

Technical Indicators: Key Signals

Relative Strength Index (RSI): The RSI on the 4-hour chart reveals a bullish divergence, indicating that the current uptrend could gain momentum. The RSI’s movement above the halfway mark suggests increasing buying strength and potential continuation of the bullish trend.

Exponential Moving Averages (EMA): The 50 and 200 EMA lines on the 4-hour chart are showing a sideways shift, which forms the boundaries of AAVE’s current consolidation range. A breakout above or below these EMAs will be crucial in determining the next phase of AAVE’s price action. A sustained break above these levels would signal a continuation of the bullish trend.

Price Targets and Fibonacci Levels

The Fibonacci retracement levels provide key insights into AAVE’s potential price targets. The price is currently challenging the 23.60% retracement level at $134. A successful breakout above this resistance could pave the way for higher targets.

For September, AAVE’s potential upside targets are projected at $155, $183, and $207, based on the 50%, 78.60%, and 100% Fibonacci levels, respectively. These levels represent significant milestones in the token’s price journey. A breakout to $200 would align with the 100% Fibonacci retracement level, marking a strong bullish move for the token.

Conversely, if AAVE falls below the $118 support level, it could test the $100 psychological mark, which would be a critical support zone. Such a decline would indicate a bearish shift, potentially halting the bullish momentum and requiring careful consideration from traders.

Market Sentiment and Broader Trends

The broader DeFi market’s recovery is also playing a role in AAVE’s potential upside. As the cryptocurrency market experiences a general rebound, AAVE’s performance could be positively impacted by this trend. The token’s ability to sustain its bullish momentum will be closely tied to overall market conditions and investor sentiment.

September is shaping up to be a pivotal month for AAVE, with key technical levels and broader market trends likely to influence its price trajectory. As the month progresses, investors and traders will be keenly watching AAVE’s ability to navigate resistance levels and capitalize on the ongoing bullish momentum.

Conclusion

AAVE’s recent rally from the $118 support level and the technical indicators suggest a favorable outlook for the token. If AAVE can maintain its upward momentum and break through key resistance levels, it could potentially reach the $200 mark by the end of September. However, traders should remain vigilant of potential downside risks and monitor key support levels closely.