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 Its 308,500 followers on social media platform
“AAVE [is] one of my favorite alts here, clear ABC on the eight-hour chart, five waves within the C wave AND a cracking eight-hour bullish divergence coming up.
In my opinion there is a T1 (tier-one) setup.”
Bluntz follows the Elliott Wave theory, which states that a bullish asset tends to witness a five-wave wave after completing an ABC correction. Based on the trader’s chart, he seems to suggest that AAVE has completed the ABC retracement with a bullish divergence to support his view on a possible reversal.
A bullish divergence is typically viewed as a reversal signal because it indicates that an asset’s momentum is rising even though its price is falling or trading sideways.
Bluntz seems to predict that AAVE will move higher to $460 in the next move, a potential upside of about 56%.
Looking at AAVE/BTC, Bluntz say the pair also flashes a similar setup, suggesting the coin is gearing up to outperform Bitcoin.
“AAVE/BTC also looks identical, with a nice high eight-hour bullish divergence timeframe.”
At the time of writing, AAVE/BTC is trading at 0.003034 BTC worth $294.71.
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Generated image: Midjourney