Market Overview for Aave/Tether (AAVEUSDT)

Summary
• Price tested key support near $164.60, bouncing on high-volume buying.
• RSI showed bearish divergence after reaching overbought levels twice.
• Volatility surged in late ET hours with a 2.5% range swing in under an hour.
• Bollinger Bands expanded, indicating increasing uncertainty and potential breakouts.
• A large bullish engulfing pattern formed at 165.1–166.06, suggesting short-term reversal.

Aave/Tether (AAVEUSDT) opened at $169.61 on 2026-01-11 12:00 ET, reached a high of $171.69, dipped to a low of $163.03, and closed at $165.73 on 2026-01-12 12:00 ET. Total volume traded was 23,317.37 AAVE, with a notional turnover of $3.77 million.

Structure & Formations

AAVEUSDT displayed a distinct short-term bearish bias during the morning ET hours, with price breaking below the 165.1–166.06 bullish engulfing pattern and falling to a low of $163.03. This move was followed by a partial recovery, with price retesting the 166.65–167.15 support cluster. Notable resistance emerged at $169.00 and $170.40, with rejection candles forming at both levels.

Moving Averages

On the 5-minute chart, AAVEUSDT closed below key short-term moving averages (20 and 50-period), indicating a bearish bias. The 200-period daily moving average is currently around $168.50, and price remains below it, suggesting that the broader trend remains bearish.

MACD & RSI

The MACD remained in negative territory throughout the 24-hour period, with bearish crossovers occurring during the afternoon ET sell-off. RSI reached overbought levels at $171.69 and $170.40 but failed to hold above 60, eventually forming bearish divergence as price fell while RSI dropped below 50.

Bollinger Bands

Bollinger Bands saw a marked expansion during the late ET sell-off, with price dropping from near the upper band to the lower band in less than 4 hours. This suggests a period of heightened volatility and uncertainty, and could lead to a consolidation phase or a breakout in either direction.

Volume & Turnover

Volume spiked during the 14:30–15:00 ET window, coinciding with a sharp drop from $163.61 to $161.60. Notional turnover during this period was nearly $1.64 million, or roughly 43% of the 24-hour total. A notable divergence occurred when price continued to fall while volume decreased after 16:00 ET, suggesting weakening bearish momentum.

Fibonacci Retracements

Applying Fibonacci retracements to the $163.03 to $166.06 move, key levels include 38.2% at $164.65 and 61.8% at $165.35. Price currently hovers near the 61.8% level and may face resistance here or find support slightly below it.

Looking ahead, AAVEUSDT could test the 164.65–165.35 range over the next 24 hours, with a potential breakout depending on order flow. Traders should remain cautious, as volume has already signaled potential exhaustion in the current move.