Ascending Trendline Remains Key to Market Structure
AAVE price is holding firm above $275, staging a rebound after testing a crucial support zone that has guided the token’s uptrend since early Q2. The move comes amid broader market volatility, highlighting the resilience of decentralized finance (DeFi) tokens.
On the daily chart, AAVE briefly dipped into the $260–$270 demand area, a region reinforced by both horizontal support and the ascending trendline that has defined its recovery since April. The price reaction underscores the importance of this zone as a make-or-break level for bulls.
Should the trendline remain intact, AAVE could attempt another push toward the $310–$325 resistance zone, where sellers have consistently capped upside moves in recent months. Above that, the major supply region remains at $360–$380, which rejected price advances earlier this year.
On the downside, a breakdown below $260 would expose the token to deeper retracement, with potential targets near $225–$240, last tested during May’s consolidation.
“AAVE’s structure is still bullish as long as the ascending trendline holds. A clean break under $260 would change the narrative, but for now, buyers are defending this level strongly,” According to BITX market analyst.
Trading activity showed a spike in volume as the token bounced from intraday lows, suggesting that buyers are stepping in at critical support. DeFi-related optimism has also lent strength to AAVE, with investors watching whether capital rotation from majors like Bitcoin and Ethereum will spill over into leading DeFi tokens.
According to BITX: “If AAVE can hold $275 and reclaim the $310 zone, momentum could shift quickly in favor of bulls. But caution is needed as rejection from overhead resistance has been a repeated theme.”
The technical outlook suggests AAVE is in a consolidation phase within a broader uptrend. The $260–$270 zone remains the key battleground for bulls to maintain control. Holding this support could set the stage for a fresh rally, while failure risks a broader correction.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.