AAVE price prediction – A deeper retracement may be on the cards because…
- Failed breakout was met with heightened promoting that pressured AAVE again beneath the $280-mark
- There could also be an opportunity that the worth would drop to $240 within the coming week
Aave [AAVE], on the time of writing, had managed to interrupt out previous the vital resistance at $280, opposite to earlier expectations. In reality, over the previous week, Bitcoin’s [BTC] worth rejection at $110k noticed AAVE wipe out a superb chunk of its current beneficial properties.
The altcoin appeared to have bullish momentum, however a transfer to the $260 and $240 assist ranges might also be attainable.
AAVE’s worth motion indicators long-term bullishness
Supply: AAVE/USDT on TradingView
The weekly chart highlighted the fast rally final November and the virtually equally swift decline in Q1 2025. This downtrend took the altcoin’s worth again to the $125 low from earlier than the rally. This meant 100% of the beneficial properties had been worn out – Not excellent news for long-term buyers.
Due to this fact, the weekly chart underlined the potential vary formation between $125 and $380-$400 within the coming months. Because the mid-point of a possible vary, the 50% degree at $262 has been a key resistance over the previous month.
The altcoin appeared to interrupt out cleanly earlier this week. It surged from $253 on Monday to succeed in $325 on Wednesday, a 28% rally, earlier than falling to $275 earlier than the week ended.
A weekly session shut above $280 can be a optimistic signal for the approaching week. The OBV has been trending greater since April – An encouraging issue for AAVE bulls.
Supply: AAVE/USDT on TradingView
The vary formation (white) was clearer on the 1-day chart. Reaching from $240 to $280, it retested the $260 mid-point assist on Friday. The breakout final Monday and Tuesday morphed right into a retracement again into the vary.
The buying and selling quantity has been excessive over the previous few days, when the worth was falling too. This might be a clue of heavy promoting quantity and bearish dominance, a clue that the OBV confirmed. The amount indicator made new lows in comparison with the previous three weeks.
Regardless of the retracement into the vary, all hope was not misplaced although. The construction of AAVE was nonetheless bearish. Nevertheless, the 20 and 50 DMAs signaled bullish momentum and will function dynamic assist ranges upon a retest, particularly the 50 DMA.
Therefore, buyers can anticipate a drop to $240 to purchase extra AAVE. Confluence of the decrease vary excessive and the 50 DMA ought to rebuff the bearish makes an attempt to proceed the downtrend.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
