Aave Price Bounces Back: Bullish Reversal or False Hope?
1min read Aave, a leading decentralized finance (DeFi) project, has experienced a volatile price journey in recent months. After reaching a local high above $400 in December 2024, the aave price has since undergone a significant correction, dropping below $200 before showing signs of recovery. Currently trading around $213, investors are wondering whether this is the beginning of a bullish reversal or if the downtrend still has room to continue.
AAVE's latest bounce suggests that the $170-$180 range is emerging as a strong support zone. This level had previously acted as resistance in October 2024 before flipping into support. The price tested this area recently and has rebounded, indicating that buyers are stepping in to defend this level. Another crucial historical support level sits around $120, which marked a major turning point during past corrections. If AAVE fails to sustain above $180, a retest of this deeper support could be on the horizon. On the upside, the $240-$250 region is the next resistance to watch. If bulls manage to push the price above this level, Aave could gain momentum and test higher targets.
The Relative Strength Index (RSI) on the daily timeframe is currently at 38, which is near the oversold territory. Historically, RSI levels below 40 have preceded strong rebounds, making this a critical zone to watch for potential upside movement. Additionally, the RSI has recently shown an upward slope, suggesting increasing buying pressure. If the RSI moves above 50, it would confirm a shift in momentum toward bullish control. The Heikin Ashi candles also indicate a potential trend change, with the latest green candle signaling a break from the persistent bearish structure. However, confirmation is needed with a higher high and a higher low in the coming sessions.
For AAVE price to reclaim a bullish structure, the first major resistance lies at $240-$250. A successful breakout above this level would likely trigger a rally toward $280-$300, which acted as strong resistance in January 2025. However, failure to breach $240 could lead to renewed selling pressure, pushing the price back toward $180. If broader market conditions weaken, AAVE might even retest its $120 support 