Key Insights:
- AAVE price breaks key resistance with strong buying volume.
- No major sell walls remain until the $240–$270 range.
- Momentum and volume support further upside.
AAVE price has gained strong momentum after breaking through a key technical pattern, with traders now watching a potential push toward the $270 resistance zone. The price of AAVE surged 8% in the past 24 hours, following a confirmed breakout from a falling wedge formation on the daily chart.
Falling Wedge Breakout Drives Uptrend
The breakout occurred from a falling wedge pattern forming since early 2025. This pattern, characterized by lower highs and lower lows converging into a narrow range, often signals a reversal in market trend. AAVE moved above the wedge’s resistance line with strong volume, confirming the bullish breakout.
Following the breakout, the price jumped from $172.06 to an intraday high of $188.08. AAVE closed the day near $185.77, marking a nearly 8% daily increase. This breakout has now cleared the way for potential continued gains. The projected price target from the wedge pattern points toward the $270 resistance area.
The breakout came with rising trading volume, indicating strong participation from buyers. There are no major sell walls until the $240–$270 zone, giving the token room to continue its move upward. Analysts are monitoring whether AAVE can sustain its momentum above $200, a psychological level and the next resistance.
AAVE Price Technical Indicators Show Continued Strength
Technical momentum indicators are backing the existing price movement. RSI is at 64.00, while bullish alarms have not yet been sounded from the overbought zones. The RSI has also crossed over its moving average line, suggesting a possible short-term upside.
The MFI is at 56.71, which indicates stable buying sentiments in the recent session. Meanwhile, the Cumulative Volume Delta (CVD) is 23.97K, indicating buyers have always been ahead of sellers throughout this price rally.
The next important levels of resistance are $200 and $240. A break and hold above $200 might send the chart toward the $240 level. Afterward, traders might go for the $270 range as it aligns with the full measured move from the wedge pattern.
Higher Time Frame Setup Builds Bullish Structure
The higher time frame chart of AAVE shows a bullish set-up supported by several rounded bottom formations, according to the market analyst of AltCryptoGems. These patterns are often developed during market reversals when the selling pressure wanes and the force of the buyers increases.
The $170 key support level has been confirmed and retested. A breakout above it, tested and rebounding, indicates a developing reversal trend. The following resistance approximates to $240. An upside breakout from this zone might present another point of buying on a possible dip.
Analysts expect further upside if the price maintains strength above $170. This support is now viewed as a base for a potential longer-term move toward higher resistance areas.
Funding Rates and On-Chain Metrics Reinforce Trend
AAVE’s open interest-weighted funding rate chart reflects consistent long positioning in recent sessions. Most funding periods are positive, meaning long traders are paying shorts. This typically happens when market sentiment favors upward price movement.
The funding rate has risen steadily alongside AAVE’s price, suggesting growing confidence among futures traders. The absence of sharp spikes also suggests that the market is not overly leveraged, reducing the risk of a sudden correction.
Over the last seven days, AAVE has experienced $229.64 million in large transaction volume, which signifies movement from the large holders. Net flows are positive, with $15.78 million flowing onto the exchanges, a portend of accumulation or reanimation for stronger trading.
Holders also show long-term commitment. Over 72% have held AAVE for more than a year. Meanwhile, 54% of current holders are in profit, with 39% still at a loss, providing room for prices to rise without triggering mass selling.
With strong whale concentration at 80%, price movement may remain volatile. However, this also means that important stakeholders have remaining important positions. AAVE also has a 0.95 correlation with Bitcoin, therefore a further strength in BTC could help further gains.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.