AAVE finds strength after correction | Credit: Hameem Sarwar
Share
Key Takeaways
AAVE has broken out of a descending channel on the 4-hour and daily charts.
AAVE’s TVL has climbed to $34.94 billion, indicating rising protocol activity.
With momentum building, AAVE may break $339.49 and potentially reclaim $400.
After enduring a double-digit price correction, AAVE appears ready to regain bullish traction. Following a pullback, AAV’s price dropped to a low of around $273.05, sparking fears it could collapse below the psychologically critical $200 level.
However, the altcoin has since stabilized and is showing signs of resilience. As the momentum changes, AAVE is looking to retest the $400 level — last seen during its most recent rally.
Will the altcoin reach that point?
AAVE Crypto Leaves Sellers Zone
On the 4-hour chart, AAVE’s price has successfully broken out of a descending channel. This pattern typically signals the end of a short-term downtrend and the beginning of a potential upward reversal.
As seen below, buyers seem to have regained control after sustained selling pressure. If this volume expansion persists, it could fuel additional upside momentum.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
Adding to the bullish narrative, the Chaikin Money Flow (CMF) — a measure of buying and selling pressure has now crossed the zero line, indicating that inflows exceed outflows.
This rise in CMF indicates growing accumulation and institutional interest, strengthening the case for a sustained recovery.
If momentum continues to build, AAVE’s price could be on track to reclaim key resistance levels, with $304.59 and $333.75 serving as interim targets.
Beyond the technical signals, AAVE’s fundamentals are also strengthening. Notably, the protocol’s Total Value Locked (TVL), a key metric reflecting the amount of capital deposited into AAVE’s lending pools, has been rising.
As of press time, AAVE’s TVL has reached an impressive $34.94 billion.. Higher TVL typically means increased protocol usage, revenue potential, and deeper liquidity.
If sustained, this could support greater demand for the token, potentially making a compelling case for a continued AAVE price increase.
Like the 4-hour chart, AAVE’s daily chart has confirmed a breach above the resistance trendline. This move marks a notable technical breakout, suggesting bullish momentum is no longer confined to the lower timeframes.
Supporting this upward move, the Money Flow Index (MFI) — which combines price and volume to gauge buying and selling pressure — has reversed from the oversold region.
This indicates rising capital inflows and growing buyer interest, typically a strong sign of trend exhaustion on the downside and potential for AAVE price recovery.
Additionally, the Awesome Oscillator (AO) has printed a green histogram bar, further reinforcing the bullish shift in momentum. This change suggests that short-term momentum now exceeds the long-term average.
Taken together, these signals could help AAVE break the resistance at $339.49, which would cause its price to surge to $400.
In the long run, if the market remains bullish, the altcoin might rally to $578.87. On the contrary, if bears overpower bulls, AAVE might decline to the channel’s lower trendline and hit $223.25.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
