AAVE price is showing signs of a broader recovery as its higher-low structure strengthens the bullish outlook. Technical conditions remain constructive after key resistance was reclaimed, while rising trading activity and expanding ecosystem participation provide additional support. Sustained strength above important levels could further strengthen the recovery and broader bullish momentum.
AAVE Price Recovery Structure Takes Shape
AAVE looks like it’s gaining strength because of the higher low in comparison to the structure seen in 2022, said Giannis Andreou.
He described the token as “The ghost is waking up” and pointed out that more gains could be realized once the key resistance levels are taken back. Confirmation would be necessary while the weekly candle remains open.
Source: Giannis Andreou’s X Post
Andreou noted that the $150-$170 range represents the first important test for AAVE. A bullish setup will get more credence from a close above $170 on a weekly timeframe and then the retest holding at support.
Until such time, however, Andreou’s recommended path will allow for a retreat back down to $100-$120, keeping the broader recovery structure intact.
In case of crossing AAVE resistance at $170, the following level of attention for this cryptocurrency will be the range from $190 to $210.
After passing this range, the way to $240–280 becomes clear, and, as the analyst said, it will be necessary to overcome both of these resistance levels in order to go towards $350–400.
Also Read: AAVE Price Eyes Recovery as Whale Adds $9.3 Million to Position
Key Support Levels Remain Important For AAVE
The negative structure is just as relevant. Andreou pointed out the significance of the level of $100 as one that the bulls must take back if lost.
If the price of AAVE drops below $100 without bouncing back up, then the range of $50-$70 becomes more relevant if there is more selling.
The TradingView chart analysis reveals that AAVE is still in the robust macro uptrend despite its consolidation in July and August.
The price was mostly ranging between $82.50 and $98.00 until late August, when the breakout helped to quicken the recovery process. AAVE has since rallied to a level of $155.16 from $138.78 and is above the 20-day moving average of $131.65.
Technical Indicators Show Cooling Momentum
Bollinger Bands also indicate high levels of volatility after AAVE’s breakout. The top band is now at the $147.76 level, while the bottom one is at $115.54.
Indicators of momentum also display some decrease in momentum. The MACD line still remains above the signal line with a positive reading of the histogram at 0.91.
Source: TradingView
The positive structure of the MACD implies that even after experiencing selling pressure, the momentum still looks encouraging.
The cooling nature of the indicators means that there is a possibility that AAVE may need to consolidate before embarking on another rally move. The performance of the price above the baseline of the moving average will be keenly watched.
Rising Volume Point to Bullish Momentum
According to the information provided by Coinglass, there is an evident change in the market environment. In particular, the AAVE trading volume grew by 50.18%, reaching the value of $657.74 million, indicating much higher participation.
Simultaneously, open interest fell by 4.30% to $343.76 million. Thus, we can conclude that the activity is growing despite lower leverage positions.
Source: Coinglass
Aave V4 Deposits Cross $30 Million on Avalanche
The activity at the base level continues to grow within the Aave ecosystem as well. The information shared by Aave revealed that the deposits of Aave V4 on Avalanche exceeded $30 million, becoming yet another milestone in the evolution of the platform. More deposits may serve as an additional context for the story of the AAVE market.
Source: Aave’s X Post
For now, the future path of AAVE is contingent upon how price reacts at the key levels pointed out by Andreou and the TradingView setup.
A break above $170 on a weekly chart might give some additional confirmation, while breaking below $100 will mean that lower levels of support need to be looked at.
Also Read: AAVE Price Eyes Breakout as Aave Ecosystem Activity Strengthens
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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