Yesterday, we highlighted a promising trading opportunity in Litecoin, and today, AAVE stands out as an equally compelling option. The token is currently in a technically favorable environment, with its price strongly respecting bullish parameters.

If the final confirmation is met—which we will outline in detail to provide a clear outlook on future price movements—AAVE could have the potential to surge by nearly 90%.

Daily time frame analysis

AAVEUSD - 1 Day Time Frame

As mentioned earlier in this analysis, AAVE's price has successfully held above a key support zone, marked in blue on the attached chart. This occurred after a Sell-Side Liquidity (SSL) sweep, during which institutional participants likely entered buy positions. This confirms that bullish parameters currently outweigh bearish ones, signaling a strong potential for further upside.

Aave price target

The trading setup is not yet fully complete. For AAVE to be considered a buy leader, the price must impulsively break and close above the nearest resistance zone on the daily timeframe, highlighted in orange on the chart.

Once this confirmation occurs, traders can enter buy positions with more confidence, improving risk management by placing a Stop Loss order below the internal low, as indicated on the chart.

Additionally, profit-taking levels should be strategically set to lock in gains. From our perspective, Take Profit orders can be placed at Buy-Side Liquidity levels, ensuring that already secured profits are protected while allowing room for further potential upside.