AAVE Surges After Explosive Reversal Breaks Above Key Level
AAVE's price has made an explosive reversal after breaking down from a rising wedge and drifting lower due to slow selling. The cryptocurrency first broke below the wedge, followed by a period of grinding sell pressure before reversing sharply with a liquidity grab. This move triggered a breakout back above the wedge structure.
The setup on the chart is quite interesting, and according to CoinGabbar's technical analysis, the price has already broken above $102.31, which was considered a key level for the recovery. If this move continues, the next levels to watch are $142.78, followed by $180.21, then $207.30, and $250.43 further out.
The current market conditions suggest that the price is still in a bullish trend, with open interest of $388.50 million against a market cap of $1.87 billion putting leverage exposure at close to 20.8% of market cap. However, this elevated level of leverage adds volatility risk in either direction.
The recent reversal has been driven by long-side liquidations, which have dominated most windows over the past 24 hours. This is consistent with the earlier wedge breakdown flush and suggests that the price may continue to move higher if momentum carries further.