A popular cryptocurrency strategist believes that decentralized finance (DeFi) altcoins look strong against the US dollar and Bitcoin (BTC).
The analyst goes by the pseudonym Plantz He tells He told his 308,500 followers on social media platform X that DeFi lending platform Aave (AAVE) was flashing multiple bullish signals on the eight-hour chart.
“Avi [is] One of my favorite alternative options here, ABC sweeps down on the eight-hour chart, scanning five waves within wave C and forming an eight-hour bullish divergence.
T1 (first level) setting in my opinion.”
Plantz follows the Elliott Wave Theory, which states that bullish assets tend to see a five-wave rally after completing an ABC correction. Based on the trader’s chart, it seems to indicate that AAVE has completed an ABC correction with bullish divergence to support his stance on a potential reversal.
Bullish divergence is usually viewed as a reversal signal because it indicates that the asset’s momentum is rising even though its price is falling or trading sideways.
Plantz appears to expect the price of AAVE to rise to $460 next, a potential rise of approximately 56%.
Looking at AAVE/BTC, Plantz He says The pair is also showing a similar setup, suggesting that the coin is poised to outperform Bitcoin.
“AAVE/BTC also looks identical, with a good eight-hour bullish divergence in the high time frame.”
At the time of writing, AAVE/BTC is trading for 0.003034 BTC worth $294.71.
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