AAVE Price Hovers Near $278 Amid Key Resistance Levels

AAVE's price is currently hovering around $278, having rebounded from its June lows. The token is moving within a well-defined range on both daily and 4-hour charts. It has managed to hold above key support zones but is struggling to break through significant resistance levels. With no major news or influential tweets driving the market, traders are closely monitoring the charts to determine the next move.

Looking at the broader picture, AAVE experienced a substantial rally in late 2024, peaking near $440 before entering a prolonged downtrend. This downtrend was finally broken around $240 earlier this year, indicating a potential shift in the market sentiment. Since then, AAVE's price has been fluctuating between $240 and $310. There was an attempt to break out near $310, but it was met with rejection, turning that level into a resistance zone. The Relative Strength Index (RSI) is currently at 54.66, showing no clear direction, neither overbought nor oversold. Earlier bearish signals on the RSI led to pullbacks, while a bullish divergence in March sparked the latest upward movement.

The current resistance zone between $310 and $330 remains a critical level to overcome. Additionally, a longer-term trendline from past highs intersects this range, adding more pressure. If AAVE's price can push through with volume, it might target $360 next. On the downside, support is between $200 and $220, with the 200-day Simple Moving Average (SMA) around $239 providing additional strength. If the price drops below this area, it could move back toward $200.

On the 4-hour chart, AAVE is forming higher lows, and the price is above the 200-period SMA, currently at $267.06. There is a solid support zone between $255 and $265 that has held up during recent tests. AAVE's price made a run at the $295–$300 resistance area but pulled back after rejection. The RSI is at 52.27, indicating neutral momentum. A bearish divergence around July 6–7 may explain the latest pullback, but as long as the price stays above $265, bulls remain in control.

Currently, AAVE's price is in a tug-of-war between support and resistance. If it can hold $265 and gain momentum, another attempt at the $310 area seems likely. However, if support breaks, the market may refocus on the $240 zone and potentially lower levels. For now, traders are watching and waiting for the next significant move.