Market Overview for Aave/Tether (AAVEUSDT)

Summary
• Price surged above 173.50, forming bullish momentum after a deep pullback from 175.68.
• MACD and RSI signal moderate strength, with RSI near 55, suggesting room for upward continuation.
• Volatility remains elevated, with Bollinger Bands widening, indicating potential for extended swings.
• Volume and turnover surged in the late-ET session, confirming recent price gains.
• A key support level appears near 170.6, with a potential counter-trend opportunity if price retests.

Aave/Tether (AAVEUSDT) opened at $170.00 on 2026-01-05 at 12:00 ET, reached a high of $177.09, a low of $168.52, and closed at $170.33 on 2026-01-06 at 12:00 ET. Total 24-hour volume was 50,997.43 AAVE, with $8.86 million in notional turnover.

Structure & Formations

Price tested key resistance around 175.0–175.68 multiple times, with a bearish reversal candle at 176.52 confirming the sell-off. A strong bullish engulfing pattern emerged during the 172.52–173.75 rebound, suggesting short-term buying interest. A key support level appears at 170.6–170.75, with a potential counter-trend opportunity if price retests.

Moving Averages and Momentum

The 5-minute 20-period SMA crossed above the 50-period line in the morning, confirming a short-term bullish bias. On the daily chart, the 50/100/200 EMA structure shows a flattening trend, with price hovering near the 200-day average, indicating a possible consolidation phase. MACD turned positive after a sell-off, and RSI near 55 suggests room for further upward movement without overbought conditions.

Volatility and Bollinger Bands

Bollinger Bands expanded sharply following the 177.09 peak, with price currently near the midline, suggesting a potential for further directional swings. The contraction period in the early morning ET provided a low-volatility backdrop before the late-session breakout, indicating a setup for a larger move.

Volume and Turnover

Notional turnover spiked to $673.9k during the 175.64–176.48 rebound, confirming buyer participation. However, turnover dropped off during the 173.56–172.83 pullback, hinting at potential fading momentum. Volume remains above average, but caution is warranted if price moves without a corresponding turnover increase.

Forward-Looking View and Risk

With key support at 170.6 and resistance at 174.0–175.0, Aave/Tether may see renewed test of 175.0–176.0 levels if buyers remain aggressive. Traders should watch for divergence between price and turnover, which could signal a shift in conviction. Volatility remains high, and sudden moves in either direction are likely in the next 24 hours.