AAVE Price Check: Bulls Eye $385 Amidst Mixed Signals

AAVE's price navigates a critical zone around $300. Will bullish development sustain the uptrend, or will bearish signals prevail? Let's dive in.

AAVE, the token for the decentralized lending protocol, is currently trading around $300, presenting a mix of opportunities and risks. Recent developments and technical analysis paint a complex picture, leaving traders wondering: what's next for AAVE's price?

AAVE Price: Consolidation Near Support

AAVE is in a consolidation phase near the $300 level. This follows a period of bullish momentum, driven by Aave Labs' August 2025 Development Update. The update highlighted progress on Aave V4, sparking a 5.51% surge to $321.78 by September 3rd. A State of Aave Health Report also revealed impressive financial metrics, including an $18 billion treasury buffer and over 19,000 active users.

Technical Analysis: Mixed Bag

Technical indicators are providing conflicting signals. AAVE's RSI sits at a neutral 46.52, indicating room to move in either direction. However, the MACD histogram shows bearish momentum divergence, suggesting potential selling pressure. AAVE price remains above the 200-day SMA ($239.22), signaling a long-term bullish trend, but it's trading below shorter-term averages like the 7-day ($307.99) and 20-day ($316.58) SMAs.

Key Support and Resistance Levels

Immediate resistance for AAVE sits at $385.99, a significant technical barrier. Key support levels include $275.76 and a stronger zone around $245.00. The 50-day SMA at $301.10 is providing dynamic support. A break above $316.58 (20-day SMA) is needed to restore short-term upward momentum.

Bullish Outlook: Targeting $385

Despite the mixed signals, a bullish AAVE price prediction targets $385 within 30 days, representing a potential 28% upside. This scenario requires AAVE to reclaim the $316.59 level (20-day SMA) and sustain above $325. Key catalysts include a potential MACD bullish crossover and RSI moving above 55.

Bearish Risks: Downside to $245

The bearish scenario involves a breakdown below the $275.76 support level, targeting the strong support zone at $245.00, representing an 18% downside risk. Warning signs include sustained trading below the 50-day SMA of $301.10 and RSI falling below 40.

To Buy or Not to Buy?

Aggressive traders might consider initial positions at current levels ($300-$305) with tight stop-losses below $290. Conservative traders should wait for a pullback to the $280-$285 support zone or a confirmed breakout above $320. For longer-term investors, the strong fundamental backdrop supports accumulation strategies near current levels.

Final Thoughts

AAVE's price action over the next few days will be crucial in determining its short-term direction. Keep a close eye on the $300.36 pivot level. A break above $316.58 could signal a renewed uptrend, while failure to hold $275.76 could lead to further correction. Buckle up, folks, it's gonna be a wild ride!