AAVE is regaining upward momentum as it bounces off a crucial support zone, even though Spot trading activity shows signs of cooling down.
The recent recovery alongside On-chain data supports a short-term bullish trend for AAVE, but the decrease in volume in the Spot market suggests that investors should be more cautious.
MAIN CONTENT
AAVE surged strongly from the important support convergence zone around 270 USD, recording three positive price reactions since April 2025.
Momentum indicators and On-chain data reinforce the short-term bullish trend, although withdrawal activity from exchanges is cooling down.
Spot trading volume has decreased compared to the beginning of the month, requiring investors to manage risks when the market trend is not yet clear.
What is AAVE?
AAVE is a DeFi platform that allows users to lend and borrow cryptocurrencies, with the AAVE Token being the native currency used in this ecosystem.
AAVE stands out for its ability to integrate various types of assets and decentralized governance algorithms, becoming one of the leading projects in the DeFi lending space.
DeFi Pulse, DeFi Market Report 2024
Built on the Ethereum Blockchain, AAVE offers services such as lending and borrowing with flexible interest rates, while attracting investor participation thanks to community governance initiatives. As a result, AAVE quickly established its position among the top DeFi projects globally.
Along with the development of DeFi, the volume of assets locked on the AAVE platform continues to grow strongly, creating great attraction for both institutional and individual investors.
What is the recent price-driving momentum of AAVE?
AAVE's price has just recovered over 5% in one day, after a strong bounce from the support zone around 270 USD – where the bullish trendline and the old gap converge.
In the past three months, this price zone has repeatedly played a support role, helping AAVE halt its downward trend and create conditions for short-term bullish reversals.
A positive price reaction three times in a row at the same support zone is a common technical signal for assets that attract smart capital.
Phan Long, Technical Analysis Expert at CryptoQuant, 2025
In fact, right after falling into the gap created from the latest surge, strong buying pressure emerged, pushing the price higher. This indicates that buyers still control AAVE's short-term trend against adjustment pressures.
For professional traders, price action at the support convergence zone is always a strategic entry point, helping to manage risks and optimize trading profits.
What is the current technical context of AAVE?
Momentum indicators all support the potential for further recovery of AAVE's price, notably the Stochastic RSI gradually approaching the oversold zone – which often opens up opportunities for a bullish reversal.
“When the Stochastic RSI hits the oversold threshold, the likelihood of a buying rebound is very high, especially for leading Altcoins like AAVE.”
Chris Lee, Head of Technical Research at TradingView, August 2025
Analysts are also paying attention to CryptoQuant's On-chain data, which indicates that AAVE withdrawals from exchanges are gradually decreasing. This is a signal that whales are not in a hurry to accumulate or sell heavily in the short term.
Combining technical and On-chain factors, the bullish outlook remains intact, especially as AAVE continues to recover from the same strategic support zone for three consecutive months.
What does AAVE's Spot trading activity reflect?
AAVE's Spot trading volume has slightly decreased compared to the beginning of the month, signaling that the market is temporarily calming down after previous hot fluctuations.
Each strong price increase cycle is often accompanied by a liquidity 'rest' phase, which is a time for the market to establish new expectations before a clear directional shift.
Glassnode Market Report, August 2025
The bubble map data of the Spot market confirms that trading cash flows generally trend downwards – investors are waiting for clear signals about the next trend instead of trying to 'catch the bottom' or 'chase the peak'.
The history of the cryptocurrency market indicates that declining volume is not always a negative sign; sometimes it reflects a willingness to wait for new bullish waves instead of acting hastily.
What risks should be noted when AAVE experiences short-term price increases?
In addition to positive technical and On-chain signals, investors still need to be cautious of significant volatility when the low-volume market is easily manipulated.
The divergence between the rising price trend and decreasing Spot trading volume may conceal unexpected corrections when buying pressure is not strong enough to maintain the trend.
Practical market experience shows that bull traps often occur when most investors lose patience during low liquidity sideways market phases.
What is the short-term forecast for AAVE’s direction?
Although technical and On-chain factors are supporting further recovery for AAVE, price movements can still change quickly as the market forms a new trend.
The recent increase reinforces investors' confidence in the continuation of a bullish wave until a clear change in the short-term price structure occurs.
Experienced investors often recommend distinguishing between day trading decisions and medium-term holds, while patiently waiting for trend confirmations when Spot volume is not yet clearly aligned.
Frequently Asked Questions
What is AAVE and what role does it play in DeFi?
AAVE is a DeFi platform that allows borrowing and lending of cryptocurrencies, offering flexible interest rates and community governance solutions.
What momentum has helped AAVE surge recently?
The price recovery is due to strong reactions at the support convergence zone around 270 USD, along with positive signals from technical indicators and On-chain data.
What will a decrease in Spot trading volume affect the price?
The decrease in Spot trading volume reflects a slowdown in short-term cash flow; however, it does not necessarily signal a declining price trend.
What should investors pay attention to when AAVE's price increases?
Be cautious of low liquidity risks and the possibility of a bull trap, prioritizing risk management when trading in a low volume environment.
Which indicators currently support AAVE's bullish trend?
The Stochastic RSI entering the oversold zone and the decrease in Token withdrawals from exchanges are both positive signals supporting the recovery.
How is the medium-term trend of AAVE being defined?
AAVE continues to maintain an upward structure as it consistently bounces off the support zone, with investors awaiting further confirmation from indicators and Spot cash flow.
Should we sell in a cooling Spot market?
Not necessarily; many investors expect the market to only temporarily rest before a new wave, prioritizing position retention along with risk control.
Source: https://tintucbitcoin.com/aave-tang-gia-xu-huong-sap-toi/
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