AAVE Price Surges 8% to $315, Faces Resistance

AAVE, a prominent decentralized finance (DeFi) protocol, has recently shown strong bullish momentum, with its price surging from below $290 to a peak of $315. However, this upward trajectory has encountered resistance, as the price has been rejected twice at the $315 level, each time dropping approximately 3%. This resistance has created a critical juncture for AAVE, with traders and analysts closely watching for the next potential moves.

The original plan, as noted by prominent analyst CryptoChiefs, was for AAVE to retest the $291.50 level before making a higher move. However, this retest did not occur, and instead, AAVE pushed directly to the resistance level of $315. This deviation from the expected pattern has left traders in a state of uncertainty, as they await confirmation of a breakout.

AAVE's price action over the past few weeks has been characterized by a steady climb from below $290. On July 9, AAVE finally broke through the $290 ceiling and began its ascent. Typically, traders would expect a pullback to the breakout zone to confirm support, which in this case would be around $291.50. However, buyers stepped in early, preventing AAVE from retesting this level. The support level of $291–$294 remains crucial, as any pullback to this zone could offer a solid entry point for traders waiting on the sidelines. Currently, the focus is on whether AAVE can successfully flip the $315 level into support.

The resistance around $315–$317 has proven to be a significant hurdle for AAVE. Both attempts to break through this level have been met with strong selling pressure, as evidenced by the long upper wicks on the candles. Without a strong move above this zone, the uptrend could pause or even reverse in the short term. To regain momentum, AAVE needs a clean 4-hour close above $317, followed by a successful retest. This would likely pave the way for a move toward the $330 level.

Analyst CryptoChiefs shared a chart illustrating two possible scenarios for AAVE's next moves. The first scenario showed a pullback and bounce that did not materialize, while the second scenario highlights the current struggle to break through the resistance at $315. If $315 holds as resistance again, AAVE could see a dip toward the support zone near $294. Conversely, if bulls can successfully flip $315 into support, the next major test will be at the $330 level. This level has not been hit in weeks and could attract a wave of new buying, especially if momentum picks up. The next few candles for AAVE will be crucial in determining the direction of the breakout attempt, as traders closely monitor the situation for signs of continued bullish momentum or a potential reversal.