A well-known crypto analyst believes that a particular altcoin in the decentralized finance (DeFi) sector is showing strength against both the US dollar and Bitcoin (BTC).
The analyst, known as Bluntz, shared with his 308,500 followers on the social media platform X that he sees positive indicators for DeFi lending platform Aave (AAVE) on the eight-hour chart.
“AAVE [is] standing out to me, showing a clear ABC correction on the eight-hour chart, along with distinct five waves within the C wave AND a notable eight-hour bullish divergence forming.
It’s a tier-one setup in my view.”
Bluntz relies on the Elliott Wave theory, which suggests that a bullish asset typically experiences a five-wave surge following an ABC correction. From Bluntz’s chart analysis, it appears that AAVE has completed the ABC retracement and is showing a bullish divergence, supporting the potential for a reversal.
A bullish divergence is often seen as a signal of a trend reversal, indicating that an asset’s momentum is increasing even if its price is stagnant or declining.
Bluntz predicts that AAVE could reach as high as $460 in the next upward movement, representing a potential upside of around 56%.
When looking at AAVE/BTC, Bluntz points out a similar setup, suggesting that the altcoin is poised to outperform Bitcoin.
“AAVE/BTC is also showing a similar pattern, with a strong eight-hour bullish divergence on a high time frame.”
As of the current moment, AAVE/BTC is trading at 0.003034 BTC, equivalent to $294.71.
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