AAVE Gains Momentum With Breakout and Trump Buy, Setting Sights on $500

Key Takeaways

• Donald Trump’s World Liberty Financial made another AAVE purchase.
• AAVE is attempting to move above the $362 resistance level.
• Can the price finally clear this resistance and move above $400?

AAVE has been thrust in the spotlight again after Donald Trump’s World Liberty Financial (WLFI) purchased another $4.8 million  in AAVE, putting its total holdings  at $6.61 million.

While this did not cause a significant price reaction, AAVE broke out from a short-term pattern and is approaching its long-term resistance at $360.

Is this the upward movement that finally takes AAVE above $400? Let’s examine the charts and find out.

AAVE Price Reaches Resistance

AAVE has struggled since creating four successive weekly bullish candlesticks in November 2024. 

The AAVE price reached a high of $399, seemingly breaking out from the critical horizontal and Fibonacci resistance at $362.

However, the rally could not be sustained and AAVE created several long upper wicks (black circles), falling back below the resistance.

Since then, the price has made several unsuccessful attempts at breaking out, also doing one this week. 

Despite the failure to break out, technical indicators do not show any clear weakness. The Relative Strength Index (RSI) is still increasing alongside its support trend line and has not generated any bearish divergence yet. 

The Moving Average Convergence/Divergence (MACD) has created successive lower momentum bars but is still positive and has not generated any bearish divergence yet. 

So, the weekly time frame AAVE analysis gives a bullish prediction, pointing to an eventual breakout.

Short-Term Breakout

The daily time frame outlook aligns with this bullish prediction. The AAVE price broke out from a descending parallel channel that existed since the aforementioned $399 high, a sign the correction is over.

If the breakout is legitimate, AAVE will soon begin to increase, since it is currently validating the channel’s resistance trend line as support (white icon). 

The wave count is also positive since it shows a completed A-B-C structure (black) inside the channel’s confines. 

Finally, technical indicators in the daily time frame are bullish. The RSI and MACD just crossed above 50 and 0, respectively, both signs of a bullish trend. 

So, the most likely future movement is an increase toward the next resistance at $490. The 1.61 external Fibonacci retracement resistance level creates this target.

AAVE Nears $500

AAVE has struggled to move above the $360 resistance area but will likely clear it soon. The breakout from the short-term channel could be the first step in the upward movement that causes a breakout.