AAVE, LINK, ETH Price Analysis: Will Donald Trump’s Top Altcoin Picks Boom?

The World Liberty Financial Initiative (WLFI), a decentralized finance (DeFi) project endorsed by US President-elect Donald Trump, has acquired cryptocurrencies worth $12 million, including Ethereum (ETH), Aave (AAVE), and Chainlink (LINK).

According to a Dec. 12 report from blockchain analytics firm Lookonchain, WLFI recently purchased 2,631 ETH at $3,801 per token, amounting to $10 million. The project also acquired 41,335 LINK and 3,357 AAVE, allocating $1 million to each asset.

Data from Arkham Intelligence shows these acquisitions have pushed WLFI’s total crypto holdings to an estimated $74.7 million. This includes approximately 14,576 ETH (valued at over $57 million), 102.9 cbBTC (worth $10.3 million), and other assets like USDC, LINK, and AAVE.

Ethereum (ETH) Technical Analysis

ETH/USD Four-Hour Price Chart Analyst — Bullish Reversal Setup Sees $4,360

Ethereum (ETH/USD) is exhibiting a classic inverse head and shoulders pattern on the 4-hour chart, signaling a potential bullish reversal. The pattern is characterized by a left shoulder, a lower head, and a right shoulder, with the neckline sloping downward—an uncommon but valid variation.

Currently trading at around $3,900, ETH’s neckline resistance is approximately $4,000. A breakout above this level could confirm the pattern, potentially driving prices toward the $4,360 target. This target is derived by projecting the pattern’s height from the head to the neckline.

Ethereum has established strong support at $3,500, a level that previously acted as resistance, supporting the bullish outlook. The 50- and 200-period exponential moving averages (EMAs) are trending higher, further reinforcing positive momentum.

However, the RSI suggests moderate strength at 55, indicating room for further upside but cautioning against overbought conditions. That said, failure to break above the neckline could result in a correction toward the $3,500 support in December.

ETH/USD Weekly Price Chart Analysis — Breakout Needs Further Confirmation

Ethereum has successfully broken out of a long-standing symmetrical triangle pattern on the weekly chart, signaling a potential shift in momentum toward bullish territory. The breakout occurred near the $3,900 level, coinciding with the 0.786 Fibonacci retracement level, a key resistance zone.

ETH/USD has struggled to maintain significant upward momentum despite the breakout. The possibility of a retest of the upper trendline, which previously acted as resistance, remains high. If the trendline holds as support, such a retest could confirm the breakout.

Key support levels are visible at the $3,500 zone, while the next major resistance lies near $4,200. The 50-week EMA has crossed above the 200-week EMA, strengthening the bullish narrative.

However, the RSI hovers near neutral territory, leaving room for further consolidation or upside. That said, a breakdown below the upper trendline could send the price toward the 20-week EMA at around $3,110, followed by the 50-week EMA near $2,890 if the selloff persists.

Chainlink (LINK) Technical Analysis

LINK/USD Four-Hour Price Chart Analysis — Massive Selloff Risks

Chainlink (LINK/USD) has formed a megaphone pattern on the 4-hour chart, characterized by widening support and resistance trendlines. Currently trading near $29, the price is at the upper boundary of the pattern, hinting at potential downside risk.

The structure suggests a decline toward the lower trendline near $22 is possible, particularly as selling pressure intensifies following the recent rally. The RSI is moderating near 63, signaling reduced momentum, while the volume spike during the recent rejection adds weight to bearish projections.

Key support levels to watch include the 50-EMA at $24.73 and the 200-EMA at $19.85. A decisive breakdown below the lower trendline could expose LINK to deeper corrections, while a sustained breakout above the upper boundary would invalidate the bearish setup.

LINK/USD Weekly Price Chart Analysis — A 40-50% Correction Likely by January 2025

Chainlink is showing signs of a correction within a long-term ascending channel on the weekly chart. After a strong rally to nearly $29, the price appears to be losing momentum, with the next potential target being the lower trendline of the channel.

This support level, aligning with the $15–$17 range, coincides with significant resistance zones observed in December 2023 and June 2024. These levels are expected to be critical for bullish momentum during the pullback.

The RSI remains overbought at 77, suggesting the possibility of further downside.

Aave (AAVE) Technical Analysis

AAVE/USDT Four-Hour Price Chart Analysis — Bearish Divergence Threatens Uptrend

Aave (AAVE/USD) is exhibiting signs of bearish divergence on the 4-hour chart, as its price makes higher highs while the RSI trends lower. This indicates weakening bullish momentum and a potential correction in the near term.

Similar patterns were observed in early December, which resulted in a pullback to key support levels. The 20-EMA ($326) and 50-EMA ($291) in the 4-hour timeframe are likely targets for a corrective move. These levels have historically provided strong support during periods of price consolidation.

Trading volume has declined, further reinforcing the possibility of a near-term retracement. A break below the 20-EMA could accelerate selling pressure, while holding above it may help AAVE maintain its bullish structure.

AAVE/USD Weekly Price Chart Analysis — Market Most Overbought in Almost Four Years

AAVE is trading near $370 on the weekly chart, reaching its most overbought level since February 2021, as reflected by the RSI surpassing 80. The rally appears overextended, increasing the likelihood of a correction toward immediate Fibonacci support levels.

The 0.618 Fibonacci retracement level at $457 is the next major resistance. However, AAVE’s price may first revisit the 0.5 Fibonacci retracement level at $379 or even the 0.382 level at $301, which aligns with previous support during its 2021 uptrend.

Further declines could test the 50-week EMA near $290, providing additional support.