AAVE Signals 870% Rally Potential With Bullish Indicators

AAVE, a prominent cryptocurrency, has recently exhibited several bullish indicators that suggest a potential upward trend. The cryptocurrency has flashed a weekly 'supertrend' buy signal, which historically has preceded significant rallies of 870% and 400% in earlier cycles. This signal, emerging near a multi-month breakout zone, adds weight to the bullish narrative, positioning AAVE for another parabolic surge if buyers sustain pressure beyond local resistance levels.

AAVE has also confirmed a textbook cup and handle pattern, a reliable bullish continuation signal. The breakout occurred above the $308 neckline, with the price action steadily approaching the next resistance at $339. This pattern often precedes sharp upward movements, especially when accompanied by increasing volume and momentum. The formation provides a technically solid foundation for further upside, particularly if AAVE manages a decisive push above the $339 resistance level.

On-chain data revealed that AAVE’s Exchange Reserve in USD value has declined by 3.79%, sitting at $754.37 million. This shift suggests a reduction in immediate sell-side pressure as investors move assets away from centralized exchanges. Historically, such outflows precede price appreciation, since available supply for liquidation shrinks. While this alone doesn’t confirm upward momentum, it reinforces the bullish setup provided by the technical indicators. Thus, the drop in exchange reserves aligns with the ongoing narrative of investor confidence and reduced short-term selling intent.

Despite these bullish technical setups, the Spot Taker CVD over 90 days remained in a “Taker Sell Dominant” state. This shows that market participants executing trades aggressively still lean toward selling rather than buying. While the broader structure supports upside potential, this data highlights ongoing skepticism among short-term traders. Therefore, buyers must overcome this pressure to sustain any breakout. If sell-side dominance continues, it could temporarily suppress momentum, but a surge in buy volume could flip the trend and validate the bullish structure.

According to a heatmap, there are dense liquidation clusters between $330 and $345, suggesting that many short positions are stacked in this zone. These levels may act as temporary resistance, but a breakout above them could trigger a wave of liquidations. Such events often accelerate price movement due to forced buybacks. Therefore, if AAVE clears this range, it could rapidly ascend toward $360 or higher. Watching how the price interacts with these zones will be key to confirming breakout strength.

In summary, AAVE’s alignment of bullish indicators—from the SuperTrend buy signal to the cup and handle breakout—signals strong upside potential. However, resistance around $330–$345 and prevailing sell-side pressure demand caution. If buyers maintain momentum and clear key levels, another explosive rally could be underway.