The token Aave (AAVE) is starting to show activity again, trading around $332. There has been a 2% increase over the last week following last week's sell-off.
Current AAVE Dynamics
The current market situation for Aave is unique as the price is located beneath a multi-year trendline. These levels have previously rejected all attempts at growth since AAVE's peak in 2021. On the daily chart, AAVE is again approaching this long-term diagonal, having spiked to the high $300s earlier this month but is now attempting to break through again.
Short-Term Forecasts
On the 4-hour chart, AAVE is attempting to reset after a recent spike-and-dump. The token has reclaimed the 50 EMA at $322, indicating a positive sign for bulls. However, the MACD histogram remains negative, suggesting that the current bounce is not fully confirmed. Key levels for short-term traders to watch are $340–$345; a break above could quickly open the path back to $360.
Overall AAVE Price Outlook
Aave is closer than it has been in years to breaking its long-term downtrend. The daily structure and RSI suggest there is room for higher movement, while the 4-hour chart indicates that bulls are trying to rebuild their momentum after the pullback. A close of a daily candle above that major diagonal and successful retest strengthens the case for a breakout rally.
Currently, AAVE is at a critical juncture. The potential for a breakout from the bear market exists, but the price must hold above certain levels to solidify positive trends.
