Aave token has been building a setup that could make traders sit up and take notice. Current AAVE price hovers around $188.37, but the 3-week chart reveals a story of accumulation and consolidation that stretches back to 2021.
Crypto analyst Altcoin Piooners shared a chart showing a structure that looks like a textbook Cup & Handle, and the implications are intriguing.
From the highs of 2021 to the lows of 2024, Aave price carved a massive cup on the 3-week chart. This formation isn’t just a shape; it represents years of market psychology.
Altcoin Piooners points out that this cup formation completed with classic volume dry-up at the bottom, meaning the selling pressure diminished and accumulation became clear. Price now hovers near $191 after bouncing off the handle zone.
Handle Formation Indicates Potential Breakout
After the cup, AAVE token entered the handle phase, a period of tighter consolidation with higher lows along the rising support curve. Altcoin Piooners notes the decreasing volatility in this phase, which is exactly what traders look for before a strong breakout. Each dip has been rejected with conviction, showing that demand is holding firm. RSI levels resetting at 50 suggest the token is setting up for another explosive move, similar to previous cycles.
Aave isn’t just chart patterns; the fundamentals add weight to the setup. Lending dominance and growth of GHO stablecoin act as strong tailwinds. The combination of technical positioning and supportive macro factors creates a scenario where AAVE price could gain momentum quickly once it breaks out of the handle.
Altcoin Piooners’ analysis shows potential targets if AAVE breaks above the $350–$400 neckline. Short-term measured moves could see AAVE token reaching $600–$800. Mid-2026 projections place the token between $1,200–$1,500, with full cycle mania potentially pushing it over $2,000. Support remains solid at the handle, with invalidation only occurring if there’s a monthly close below $120.
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The chart paints a clear narrative. AAVE has formed a massive cup, entered a disciplined handle, and is now coiling for a potential breakout. Altcoin Piooners emphasizes that until the handle support breaks, this setup is textbook preparation for what could be a major DeFi rally.
Observing how AAVE price reacts in the coming weeks may provide some of the clearest signals for the next phase of growth.
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