AAVE is showing many strong technical signals, indicating the potential for significant growth in the near future.
Signs such as the SuperTrend buy signal, the cup and handle pattern, and a decrease in exchange reserves reinforce the bullish outlook for AAVE, especially if the price breaks above the resistance zone of $330–345.
MAIN CONTENT
AAVE's weekly SuperTrend buy signal indicates a high likelihood of price increase based on previous cycles.
The cup and handle pattern confirms strong accumulation and the potential for a technical breakout in the short term.
A 3.79% decrease in exchange reserves indicates reduced selling pressure and the potential for the next upward momentum.
Can AAVE break out strongly thanks to the accurate cup and handle pattern?
Technical analysts often regard the cup and handle pattern as a reliable continuation signal for upward trends. This pattern has just been confirmed as AAVE surpassed the $308 neck line, aiming for resistance at $339. According to TradingView data, the balance and timing of the pattern formation reflect a good accumulation process.
This helps increase sustainability for the next price increase if AAVE can successfully conquer the $339 level, paving the way to a higher target price zone.
Why is the SuperTrend signal important for AAVE?
AAVE's weekly SuperTrend buy signal often precedes strong price increases. Previously, this indicator has led to price increases of 870% and 400% in past cycles.
The SuperTrend buy signal appearing at an important price level is a confirmation of AAVE's long-term upward trend.
Ali Charts, technical analyst, 2025
Currently, AAVE is trading around $318, very close to the multi-month breakout zone. History shows that this indicator has a high accuracy rate in predicting breakout price increases.
Does a 3.79% decrease in exchange reserves indicate a positive sign?
On-chain data from CryptoQuant shows that AAVE reserves on exchanges have decreased by 3.79%, down to about $754.37 million, reflecting a trend of capital withdrawal from centralized exchanges.
This often means that short-term selling pressure decreases due to the dwindling amount of coins available for liquidation. Although not enough to confirm an upward trend, this is a positive supportive development for technical movements.
Can prolonged selling pressure slow down AAVE's upward momentum?
Despite positive technical signals, the Spot Taker CVD data over 90 days shows that selling pressure is still dominant with the state of 'Taker Sell Dominant'.
Short-term investors are still hesitant, maintaining sell positions which keeps supply pressure high.
CryptoQuant, end of 2025 market report
To achieve a sustainable breakout, buying pressure needs to be strong enough to mitigate this pressure. If selling pressure continues, the upward momentum may be delayed or adjusted.
Do the liquidation clusters in the $330–$345 range drive AAVE's breakout?
CoinGlass liquidation heatmap reveals many short positions concentrated between $330 and $345, forming a strong resistance zone. A price break above this will trigger a wave of forced liquidations, driving rapid buying.
This is seen as an opportunity for AAVE's price to reach $360 or higher in the upcoming period. Price interaction with this zone is the determining factor for whether the breakout momentum is truly solid.
Overview: How is AAVE facing the opportunity for price increase?
A series of indicators from technical to on-chain align with AAVE's strong bullish potential, including the SuperTrend signal, the cup and handle pattern, and the decrease in exchange reserves.
Despite certain selling pressure remaining around the $330–345 zone, if buyers can maintain momentum, AAVE has the potential to create the next strong breakout.
Frequently Asked Questions
What is AAVE and how does it work?
AAVE is a DeFi protocol that facilitates borrowing and lending cryptocurrencies. This protocol is highly regarded for its liquidity and safety according to the 2025 market report.
Is the SuperTrend signal accurate?
The weekly SuperTrend signal has previously led to major price increases for AAVE and can be considered a reliable indicator when combined with other technical factors.
What does a decrease in exchange reserves mean?
The decrease in AAVE reserves on exchanges mainly signals that investors are holding coins longer, reducing short-term selling pressure, supporting the bullish opportunity.
How does prolonged selling pressure affect AAVE?
Significant selling pressure may slow down the upward momentum, making it challenging for the breakout trend if buying power is not strong enough to balance.
How to monitor AAVE's important resistance levels?
Monitoring the price range of $330–345 through indicators such as liquidation heatmaps helps predict AAVE's breakout or adjustment potential more effectively.
Source: https://tintucbitcoin.com/aave-xuat-hien-tin-hieu-supertrend/
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