The failed breakout led to a strong wave of selling, causing AAVE to fall below the 280 USD mark.
The price of AAVE could drop to 240 USD next week.
At the time of writing, Aave [AAVE] has unexpectedly surpassed the important resistance level at 280 USD, contrary to previous predictions. However, the price rejection of Bitcoin [BTC] at the 110,000 USD mark has caused AAVE to lose much of its recent upward momentum.
Although AAVE is showing bullish momentum, the possibility of the price dropping to support levels of 260 USD and 240 USD is still very much a possibility.
The price movement of AAVE reinforces the long-term growth outlook.
Source: AAVE/USDT on TradingView
The weekly chart shows a strong upward trend for AAVE in November last year and a significant correction in Q1/2025. This decline has pulled the altcoin price down to a low of 125 USD – meaning all profits from the previous increase have been wiped out, negatively affecting long-term investors.
Based on current developments, AAVE is likely to form a trading range between 125 USD – 380-400 USD in the coming months. The central price area at 262 USD (the 50% level of the range) has continuously acted as strong resistance over the past month.
AAVE broke through this price range earlier in the week. Specifically, the price surged from 253 USD on Monday to 325 USD on Wednesday – a corresponding increase of 28%. However, by the end of the week, the price adjusted back to 275 USD.
Closing the weekly session above the 280 USD mark would be a positive signal for investors. Notably, the OBV indicator has also been trending upwards since April – a factor that strengthens confidence for the buyers.
Source: AAVE/USDT on TradingView
On the daily chart, the trading range (white) is clearly shown from 240 USD to 280 USD, with the central support point at 260 USD being retested on Friday. The breakout at the beginning of the week quickly turned into a correction back to the old price range.
Recent trading volume has surged, especially as prices decline – a sign of significant selling pressure with sellers in control. OBV confirms this as the indicator creates a new lower low compared to three weeks ago.
Although the price has retreated to the range, the bullish outlook is not completely over. Structurally, AAVE is still in a downtrend. However, the 20-day and 50-day moving averages (DMA) are signaling upward momentum, while also serving as dynamic support – especially the 50 DMA.
Therefore, investors may wait for a drop to 240 USD to accumulate more AAVE. The convergence between the swing low and the 50 DMA is likely to prevent a deep decline, supporting a price recovery.
Source: https://tintucbitcoin.com/aave-doi-mat-nguy-co-giam-manh/
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