A popular crypto strategist thinks an altcoin in the decentralized finance (DeFi) space looks strong against the US dollar and Bitcoin (BTC).
Pseudonymous analyst Bluntz tells his 308,500 followers on social media platform X that DeFi lending platform Aave (AAVE) is showing several bullish signs on the eight-hour chart.
“AAVE (is) one of my favorite alts here, clears ABC on the eight hour chart, clears five waves in wave C AND an eight hour bullish divergence is brewing.
T1 (level one) configuration in my opinion.
Bluntz follows the Elliott Wave Theory, which states that a bullish asset tends to experience a five-wave surge after making an ABC correction. Based on the trader’s chart, it appears to suggest that AAVE has completed the ABC retracement with bullish divergence to support its position on a potential reversal.
A bullish divergence is generally considered a reversal signal because it indicates that an asset’s momentum is increasing even if its price is falling or trading sideways.
Bluntz seems to predict that AAVE will reach $460 for the next leg, a potential upside of around 56%.
Looking at AAVE/BTC, Bluntz says the pair also exhibits a similar setup, suggesting the coin is preparing to outperform Bitcoin.
“AAVE/BTC also looks identical, with a nice eight-hour bullish divergence on a high time frame.”
At the time of writing, AAVE/BTC is trading at 0.003034 BTC worth $294.71.
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