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AAVE rallied strongly from the $105 support level with a double bullish candle on the four-hour timeframe to signal the strong buying pressure on the altcoin. This was a bullish pushback by buyers after the token had fallen from $153 to $105 over the past week. It's now sitting at around $120, or around 9% up in 24 hours.
The bullish rebound for AAVE coincided with the entire crypto market returning to bullish ways after the dip which saw BTC fall from its all-time high of $73.6k to $60.7k.
As at press time, the kingcoin was back trading at $68k with the possibility of crossing the $70k mark again in the coming days. Elsewhere Ethereum (ETH) and Binance Coin (BNB) also made strong comebacks with both altcoins hitting double digit price pumps within the past 12 hours.
AAVE's Reward Program
The AAVE reward program aims to incentivize stakers and borrowers on the protocol with a total of $2.1 million in wETH and $2.9 million in GHO to be airdropped to qualifying holders.
The program is called Merit and it is a reward system that will see users receive points over time for specific activities in the AAVE ecosystem. The calculation system is kept private to prevent users gaming the system.
This incentive based system could further spur AAVE’s price trajectory with the protocol still one of most popular lending platforms in DeFi with a total volume locked (TVL) of $11.37 billion.
Buyers Revel in Bullish Price Action
The Relative Strength Index (RSI) crossed the 50 mark to highlight the growing buying pressure. This is vital for buyers with the $122 resistance standing in the way of a new bullish trend.
With rising capital inflows, buyers could flip the resistance level and go on a bullish run. As such, traders can maximize this trade opportunity by waiting for a bullish candle close above $123.
This will offer a low risk entry point with stop loss level at $110. A break of the selling resistance at $122 will see buyers aim for $150 with a profit target of 30%.
Trade Idea
Entry: $123
Target: $150
Stop loss: $110
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
