Altcoins News
By Maheen Hernandez
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Aave’s native token, AAVE, is back under pressure after a short-lived breakout attempt above a key resistance zone.
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Now, with rising sell pressure and technical support being retested, analysts warn that a deeper retracement to $240 may be on the horizon.
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AAVE began the week strong, climbing from $253 to $325 in just two days—a 28% jump that momentarily signaled a breakout from its consolidation range.
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However, by Friday, the rally had completely reversed. AAVE slipped back below $280 and re-entered a prior trading range between $240 and $280.
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The abrupt reversal points to a classic bull trap, where breakout buyers are left holding positions in a rapidly declining market.
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Despite the recent setback, AAVE’s weekly chart still shows signs of long-term range formation.
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Now, technical analysts view the $125–$400 zone as a developing range. The midpoint of this range, around $262, has acted as both support and resistance over the past month.
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One encouraging sign for long-term investors is the On-Balance Volume (OBV) indicator, which has been trending upward since April.
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On the daily chart, the price action is more telling. AAVE’s brief breakout above $280 was followed by heavy selling, pushing the token back into its established range between…
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The OBV also fell sharply, making new lows for the month. This confirms that recent trading was driven by distribution rather than accumulation, signaling bearish dominance in…
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However, moving average indicators tell a slightly more optimistic story. Both the 20-day and 50-day moving averages are sloping upward, showing that some upward momentum still…
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For traders and investors watching AAVE closely, the $240 level is shaping up to be a critical test.
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If AAVE manages to hold $240 and attract fresh buying volume, the token could stabilize and mount another attempt at $280 and higher.
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At present, market sentiment remains mixed. While long-term structural support levels remain intact, the short-term outlook has clearly shifted toward the bearish side.
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In summary, AAVE’s failed breakout above $280 casts doubt on the strength of the recent rally.
The Currency Analytics
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