Aave Price Breaks Key Support Amid Double-Top Pattern Triggers 31% Drop Warning

The Aave (AAVE) token has shown bearish momentum following a rejection at the $335 resistance level. Over the past 48 hours, the token has fallen by 12.03% [1]. This decline has raised concerns among traders and analysts, particularly after the key support range between $300 and $310 was breached, suggesting the downward trend may continue [1].

Renowned market analyst Ali Martinez has identified a double-top pattern in the AAVE chart, a classic bearish formation that signals a potential reversal in price action [1]. The pattern features two unsuccessful attempts to break above $335, followed by a breakdown below the neckline support. The critical level to monitor is now $278–$280, which acts as the neckline of the pattern. A decisive close below this level would confirm the bearish outlook and could push the price further toward $230 [1].

Martinez also noted that the bearish scenario would be invalidated if AAVE remains above $278–$280 and regains control of the $335 resistance level [1]. A successful rebound could reignite bullish momentum, potentially pushing the price toward $370. However, the current price of AAVE, at $296 as of the latest 24-hour period, reflects a 0.71% decline and a 7.55% monthly loss [1]. These figures place AAVE under pressure in the context of broader cryptocurrency market corrections.

Despite the recent pullback, AAVE has remained a top-performing token this year, with a year-on-year gain of 168.77% [1]. The Aave protocol itself has surpassed $3 trillion in total deposits since its launch in December 2020, with a current total value locked (TVL) of $37.15 billion across major blockchains like Ethereum, Arbitrum, and Base [1]. These figures highlight the protocol’s continued relevance and scale in the decentralized finance (DeFi) sector.

The ongoing price movement of AAVE reflects the broader volatility characterizing the DeFi space. With the formation of a double-top pattern and the breakdown of key support levels, traders are now closely watching the $278–$280 region for further directional clues [1]. A continuation of the bearish trend could lead to a 31% correction from the $335 peak, exposing the token to deeper losses. A sustained rebound, however, could indicate a shift in market sentiment and a potential resumption of the bullish trend.

Source:

[1] Aave Rejected At $335 Resistance, Technicals Point To 31% Correction (https://www.newsbtc.com/news/aave/aave-rejected-at-335-resistance-technicals-point-to-31-correction/)