Much of the crypto market is starting to look bullish again. But one coin in particular I’m keeping an eye on is AAVE.
I’ll discuss why in today’s newsletter, and provide updates on BTC, ETH, ALGO, VET, and VRA!
Why I’m Bullish on AAVE
AAVE remains the number one DeFi (decentralized finance) protocol in terms of value locked. It’s been that way for quite some time.
And as long as DeFi continues to expand, which I think it will, protocols like AAVE should do exceedingly well.
One look at the total value locked in DeFi and it’s clear which direction the market is heading.
Of course, the big unknown for the last few months has been Bitcoin and the crypto market at large.
While things are starting to look more bullish for the entire space, things weren’t so clear just last month.
As long as BTC continues to behave and takes out its $65,000 all-time high, I can see AAVE reaching well above the $1,000 mark in late 2021 / early 2022.
That’d be a 230% gain at a minimum.
Apart from being the number one protocol in the fast-growing DeFi space, the reason I like AAVE is the chart.
It gives us a clear “trigger” level to work with. In other words, if AAVE closes above channel resistance near $375, then I think this market goes to $450, $670, and potentially to $1,000+ in the next few months.
However, all of this depends on Bitcoin. That goes for every altcoin I discuss.
As long as BTCUSDT can take out $65,000, AAVE and other alts should rally hard into late 2021 and perhaps even early 2022.
On the flip side, if BTCUSDT were to start dropping back below key levels like $53,000 and $50,000, then all bets are probably off for an AAVE run.
Bitcoin is breaking out of the $54,300 area today. It’s a level I just mentioned in yesterday’s video.
To recap, that’s the head and shoulders neckline from earlier this year. So a daily close above $54,300 should flip that level to support.
Otherwise, we could see a retest of $53,000 as new support.
A close above $54,300 opens up the $60,000 resistance level, with a close above that taking on the $65,000 all-time high.
Of course, the higher BTC goes, the more likely it is that we’re still in a bull market. However, keep in mind that Bitcoin must take out $65,000 to officially signal that the bull market is back on.
ETH started to test the $3,670 resistance area today, which is why we saw it lose some momentum in the afternoon.
Things are quite simple for ETHUSDT at the moment. As long as this market is above $3,200, the rally is intact. At the same time, buyers need to clear $3,670 and the $4,000 area to send the market to all-time highs.
We all know ETH will follow BTC, so as long as Bitcoin is behaving and heading toward $65,000, I’d expect ETHUSDT to follow with a break above $4,000.
ALGO is currently respecting a weekly support level at $1.75. It broke above this level in early September and has remained above it on a weekly closing basis.
Given the ascending channel that’s been in place since the bull run started, a move to $5 – $7 over the coming months makes a lot of sense.
But remember, that hinges on BTC breaking the $65,000 marker. If it does, I think ALGOUSDT does $5 – $7, maybe more.
VET could be repeating its November to December lows when it was trading below two cents.
As long as Bitcoin behaves and takes out $65,000, I think VET is going to $0.50 on the conservative end.
However, the top of the two-year channel comes in between $1.50 and $2.70 depending on when the bull market tops out.
Of course, there are no guarantees. Just because a channel top lines up in that area does not mean VETUSDT will reach those prices.
That said, I think this market has a great chance to reach $1 or higher should Bitcoin take out the $65,000 level.
VRA is approaching a critical resistance area near $0.05 that, if broken, could send this market much higher in the coming months.
It’s difficult to say how high as VRA would be in price discovery at that time. However, a run at $1+ is certainly not out of the question.
The $0.026 area remains support, but I’d be surprised to see another retest.
Instead, I’d be on the lookout for a daily and weekly close above $0.055 for a run toward $0.10 and beyond.
Just remember to keep one eye on Bitcoin.