AAVE price is trading above $166 after breaking out of a multi-month downtrend. The recent price action has caught the attention of traders, but the question remains: is this the start of a new rally, or just another pause before heading lower?
Let’s break down the chart and see whether it makes sense to throw $1,000 into AAVE right now.
What you'll learn 👉
AAVE Price Breaks Out of Downtrend, But Resistance Looms
Since early January 2025, the AAVE price has been stuck under a descending trendline that rejected every major rally. This trendline acted as a ceiling, with multiple failed breakout attempts throughout February and March.
That changed in early April. The AAVE price finally broke through the trendline near the $140–$150 level, pushing higher with conviction. After the breakout, price consolidated and then moved upward again, confirming a shift in sentiment. It’s now trading around $166, roughly 18% above the breakout zone.
Still, key resistance remains at $190–$200, a zone that rejected price action twice earlier in the year. Until AAVE can close above that level with strong volume, it’s too early to confirm a long-term trend reversal.
Buyers Defend Support Zone as Higher Lows Form
Below the surface, the structure is improving. The AAVE price has repeatedly bounced off the $110–$120 range, which has served as a solid support base since mid-March. That area also matched accumulation zones from previous consolidation phases, giving it technical strength.
Since the final low near $110, price action has shifted. The AAVE price is now forming higher lows and pushing above former resistance levels. This emerging bullish structure suggests the token may be entering a new upward cycle if it can break through the next wall.
The $150–$160 range now acts as a soft floor, while a move past $200 would clear the path toward targets like $240 and $270.
So, Should You Invest $1,000 on AAVE?
AAVE price is showing signs of bullish momentum, but it’s not in full breakout mode yet. The descending trendline has been broken, and higher lows suggest renewed strength. Still, the $190–$200 resistance zone stands in the way of a clear uptrend.
If AAVE can close above that range with volume support, it could climb toward $240 and beyond. But if the rally stalls below $190 again, a pullback toward $150 or even the $130 zone remains on the table.
Right now, buying AAVE carries upside potential, but with it comes the risk of another retest.
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