Market Overview for Aave/Tether (AAVEUSDT) - October 13, 2025

• Aave/Tether (AAVEUSDT) rose from $242.93 to $254.59 before consolidating into a range.
• A bullish trend was followed by a pullback as RSI signaled overbought conditions.
• Bollinger Bands showed volatility expansion and retracement to key levels.
• High volume spikes confirmed key price movements, especially in the morning session.
• A potential breakout pattern formed near $252.33, but bears regained control by the close.

Aave/Tether (AAVEUSDT) opened at $242.93 on October 12, 2025, and surged to an intraday high of $256.37 before settling at $249.14 by 12:00 ET on October 13, 2025. Total 24-hour volume amounted to 103,657.646 with a notional turnover of $26,475,300. The pair displayed clear bullish and bearish phases, marked by distinct candlestick formations and key support/resistance levels.

Structure & Formations

AAVEUSDT displayed a strong bullish phase from 19:30 to 20:30 ET, marked by multiple bullish engulfing patterns. Resistance levels formed at $252.33, $254.53, and $256.37, while support appeared at $250.42 and $247.12. A bearish doji emerged around $250.99, signaling potential exhaustion in the rally.

Moving Averages

On the 15-minute chart, price crossed above the 20-period and 50-period moving averages during the rally, confirming the bullish trend. On the daily chart, the 50-period SMA currently sits above the 100-period and 200-period SMAs, suggesting a mixed momentum profile.

MACD & RSI

The MACD crossed into positive territory during the morning hours, confirming bullish momentum. RSI peaked above 70 in the afternoon, signaling overbought conditions and potential for a correction. By the close, RSI had receded to 58, indicating moderate buying pressure but no immediate reversal.

Bollinger Bands

Price action showed significant volatility expansion as it broke the upper Bollinger Band multiple times during the morning session, only to pull back into the band during the afternoon. The 20-period Bollinger Band width remained elevated, suggesting a period of heightened uncertainty.

Volume & Turnover

Volume spiked above $2 million at key moments, especially between 19:30 and 20:30 ET, supporting the breakout attempts. Turnover increased in line with price surges, confirming buying pressure. However, a divergence emerged between volume and price after 01:00 ET as the rally stalled, suggesting a potential bearish reversal.

Fibonacci Retracements

On the 15-minute chart, price retraced to 61.8% of the $247.12–$256.37 move at $252.33, offering temporary support. The daily chart showed a 38.2% retrace at $248.64, which held briefly before giving way to further consolidation.

Backtest Hypothesis

The “AAVE Bullish Engulfing – 3-Day Hold” strategy is grounded in the technical patterns observed during today’s session, particularly the bullish engulfing and breakout formations. The strategy leverages these signals to identify high-probability entries during strong momentum shifts. The back-test module provides a detailed analysis of its performance from 1 Jan 2022 through 13 Oct 2025, including equity curves and trade details. Given the recent price action and volume confirmation, this strategy could be worth exploring for the upcoming 72-hour window.