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Cryptocurrency News Articles
AAVE Price Prediction: Aave (AAVE) Price Shows Strong Upward Momentum, Technical Signals and On-chain Data Suggest a Potential Breakout
May 24, 2025 at 01:19 pm
AAVE price is showing strong upward momentum. Technical signals and on-chain data suggest a potential breakout. Buying support is strong, and resistance levels are minimal.
Key technical signals and on-chain data suggest that AAVE price could be poised for a breakout.
The DeFi lending protocol has seen strong buying support at a key level, while resistance is minimal at the moment.
One analyst says that a pullback could open up an opportunity for reaccumulation.
AAVE price is showing strong upward momentum, with technical signals and on-chain data pointing toward a potential breakout.
The DeFI lending protocol has seen some strong support for buyers at a key level, while resistance is minimal at the moment.
One analyst says that a pullback could open up an opportunity for reaccumulation.
Aave Could Reach $345 Shortly
The AAVE/USDT chart on the four-hour timeframe shows a pattern of consistently forming higher highs and higher lows, highlighting the prevailing bullish momentum.
After a breakout above local resistance, which was nearly at $245, this level was quickly converted into strong support.
Visible buy wall orders around this zone continue to support the current rally. The data shows that the price is moving up because the total volume of buyers is greater than that of sellers.
Aave is currently priced at $264, and the next key technical level is around $345, where a substantial sell wall is present.
There has been significant accumulation, and the high trading volume during the upswings keeps the momentum going.
If market conditions remain strong, we can expect the market to continue moving toward the resistance band.
Analyst Views Support a Bullish Outlook for AAVE Price
AAVE price has experienced a surge of over 100% from its recent low.
One market analyst, known as CryptoPoseidonn on X (formerly Twitter), notes that a short-term pullback could be expected before further gains.
Aave is currently consolidating within the range of $260 and $285. This range was previously a supply zone in early 2025.
However, even with this pullback, the analyst anticipates that any corrections will find support near the 200-day EMA, which is currently around $200.
Historically, this moving average has acted as a reliable foundation for trend continuation.
If the price were to revisit this area, it may present an opportunity for reaccumulation before another upward leg. The structure forming on the daily chart could be viewed as a W-pattern.
If AAVE price manages to hold the $200–$215 zone, it could rebound to trade above $300, keeping the broader trend intact.
Long-Term Channel and On-Chain Data
Bitcoinsensus adds that AAVE’s price action is contained within a defined bullish channel.
Since 2023, the asset has shown a pattern of exponential wave gains. The first wave brought a 70% gain, followed by a 150% increase and a 460% increase in successive rallies.
According to the logarithmic chart pattern, the next wave might boost the Aave rate to a maximum of $950.
Trading on this channel shows larger lows than the previous ones and larger highs.
We can expect further positive movements when the AAVE price doesn’t fall below the trendline.
On-chain metrics also confirm this shift. Around 63% of those holding AAVE are in profit, and 72% have held the coin for over twelve months.
Many investors are interested in the long-term future, which helps decrease selling.
About 80% of AAVE is owned by large investors, showing that many have confidence in it.
Large capital movements are indicated by the $559.61 million in large volume transactions during the past week. That means $15.78 million was added to the asset during this period.
AAVE’s price tends to move together with Bitcoin, with a highly similar trend. When Bitcoin is rallying, AAVE could see a boost too.
Network Usage and Sentiment Support Price Momentum
The daily active addresses for AAVE price rose to about 9,300, while its trading volume and price increased.
The rising interest can be traced to the recent rise in the price. It is clear from the chart that Aave price and usage generally trend upward together.
AAVE price was down 4.89% from $262.06 to $246.78. Although the market rallied back, RSI and MFI still signal that the bullish trend continues.
A drop in capital inflows has caused negative CVD. However, staying above $213 might protect the rally, while $268 is the next target for resistance.
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