Following the recent $130 breakout, the triple crow setup marks a retest phase for AAVE. Will a post-retest reversal reach $150?

As the altcoins market gains momentum, the DeFi space is back in action. With AAVE entering the top gainers list, a breakout rally teases a bull run in September.

Will this bull run reach the $150 psychological barrier in September?

AAVE Breakout Rally

With a market cap of $1.95 billion, AAVE is on the verge of hitting the $2 billion mark. The DeFi token has increased by 9.23% in the past 24 hours and is currently trading at $131.

On the 4-hour chart, Aave’s price action exhibits a robust uptrend, punctuated by a minor pullback. After reaching a 30-day peak of $148, the AAVE token later retreated to the $117 support level, where it bounced back multiple times.

Notably, it has also found support at the 200-period exponential moving average (EMA) on the 4-hour chart, suggesting a strong foundation for potential future growth.

According to trend-based Fibonacci levels, the AAVE token is facing resistance at the 38.20% level, approximately $137, struggling to break above it. Over the past 12 hours, the DeFi token has experienced a 3.14% decline, forming three consecutive bearish candles.

However, the recent V-shaped rebound, which successfully surpassed the 23.60% level at $129, suggests that the current correction is more of a retest phase rather than a reversal.

The MACD momentum indicator is displaying a positive trend, with both the MACD and signal lines crossing into positive territory, lending credence to the ongoing bullish trend.

Moreover, the 50 and 200 EMAs in the 4-hour chart continue to exhibit a bullish trend, maintaining a sideways trajectory despite the recent pullback.

Chances of a Successful Post-retest Reversal AAVE

The underlying demand for AAVE is gaining momentum, with key indicators in the 4-hour chart aligning to support the DeFi token’s upward trajectory. Notably, the token’s impressive 143% return over the past year underscores the strength of the ongoing bull run.

Against this bullish backdrop, the recent price rejection at lower levels suggests a potential post-retest reversal, setting the stage for a resumption of the uptrend. In this scenario, the 38.20% and 50% Fibonacci levels at $137 and $143 emerge as critical target zones.

On the downside, the $130 and $117 levels serve as crucial support zones, providing a potential safety net in the event of a bearish reversal.