Aave (AAVE) has been making headlines recently after breaking out of a descending wedge pattern, which raised an 11.78% price surge. As of writing, Aave is trading at $232, showing substantial bullish momentum. This breakout marks a significant shift in its price action, and several key factors, from technical indicators to market strategies, suggest that the cryptocurrency could be on a path toward further gains, with some analysts eyeing a target of $258 in the near term.

Aave’s recent rally comes after it broke above a descending wedge formation that had been in play since the beginning of 2025. The cryptocurrency had tested the descending resistance trendline multiple times, and finally, after a period of consolidation above the $220 level, Aave saw a substantial upward movement. Technical indicators, including the Relative Strength Index (RSI), were signaling room for more buying, as it stood at 49—indicating that the coin is not yet overbought. The Moving Average Convergence Divergence (MACD) and short-term moving averages also flashed ‘buy’ signals, confirming the breakout and reinforcing the idea that the rally has legs to run further.

Additionally, the Aave community and protocol updates have contributed to the growing positive sentiment around the coin. One major development that has caught the attention of investors is Aave’s declaration of its $1 million weekly token buyback plan. Known as the “Aavenomics” proposal, the buyback strategy aims to reduce the circulating supply of AAVE, a move that is expected to boost its price by creating scarcity. This supply reduction, coupled with the technical breakout, has positioned Aave for a potential price surge. As a result, many market participants are looking at the $258 price point as a key resistance level that could be the next target for Aave in the mid-term.

On-chain data further supports the bullish case for AAVE. According to IntoTheBlock, large holders—commonly referred to as whales—control 80% of AAVE’s total supply, with 56% of them currently in profit. This creates a favorable environment for further accumulation, as these large investors are likely to continue buying, contributing to increased buying pressure. In the past week, Aave saw $903.66 million in large transactions, a sign of renewed interest from institutional investors and traders alike. The surge in large transactions, coupled with the increase in active addresses and daily transactions, shows that network activity is growing, further adding to the positive market sentiment.

In terms of price targets, WorldOfCharts’ analysis suggests that Aave could potentially rally towards the $258 resistance level in the short term. In the longer term, there is optimism that the cryptocurrency could eventually hit the psychological $350 mark, although that would likely require continued buying pressure and a sustained bullish trend. With the current momentum and market developments, hitting $258 appears to be within reach.

Looking ahead, the combination of technical signals, on-chain data, and Aave’s growth strategies suggest that the coin is poised for further gains. As the coin’s supply decreases due to the weekly buyback program and with increasing whale interest, Aave could see a significant price increase in the coming weeks. Investors and traders alike are keenly watching Aave’s progress, and with a strong support structure in place, the next key levels to watch are $258 and $350.

Aave’s future remains promising as it continues to make strides in the crypto market. For those looking to enter at key levels, the recent price action and upcoming buyback plans present a potentially lucrative opportunity, although, as always, investors should keep a close eye on market conditions and developments.