TLDR
- Aave broke out of a 3-week range formation and surged 30% over four days
- The token is trading at $313 with resistance levels at $320 and $332
- RSI hit overbought territory at 75.83, up from 44.51 two days ago
- Chaikin Money Flow turned positive at 0.24, showing capital inflows
- Key resistance sits at $317 with potential targets above $340 if broken
Aave has emerged from a consolidation period with strong upward momentum. The DeFi token broke free from its three-week range formation and delivered a 30% price increase over just four days.
The rally began after AAVE retested the range low at $240 on June 6th. This level held as support before the token launched higher.
AAVE is currently trading at $313. The price action has pushed the token’s market cap to $4.6 billion.
The breakout coincided with Bitcoin’s move from $105,500 to $110,500 on Monday. This broader market strength helped fuel AAVE’s advance.
Technical indicators are showing mixed signals. The Relative Strength Index climbed sharply from 44.51 to 75.83 in two days. This reading puts AAVE firmly in overbought territory above the 70 threshold.
The Chaikin Money Flow indicator turned positive at 0.24, up from -0.04 two days earlier. This shift indicates buying pressure and capital flowing into the token.
However, CMF dropped from a recent peak of 0.41, suggesting some profit-taking activity. The overall trend still points to accumulation by buyers.
Range Formation Sets Stage for Breakout
The three-week range gave AAVE time to build momentum and establish liquidity levels. Trading volume concentrated around the range extremes at $240 and $280.
Short liquidations built up in the $295-$300 zone during the initial move higher. These levels were cleared as the price pushed through.
The On-Balance Volume indicator showed steady demand throughout the range formation. This suggested underlying strength before the breakout occurred.
Fibonacci retracement levels from AAVE’s November-December 2024 rally provided additional technical context. The token had retraced those gains by April before beginning its current uptrend.
Key Levels and Support Zones
Immediate resistance levels sit at $320 and $332. These represent the next hurdles for continued upward movement.
If AAVE breaks through the current resistance at $317, targets above $340 come into view. The EMA structure supports continued bullish momentum with short-term averages well above long-term ones.
Support levels remain at the former range high around $285. A pullback to this area could offer buying opportunities for swing traders.
The $282 level represents deeper support if the current momentum stalls. Below that, the $237 level marks the lower boundary of potential retracement.
A drop toward the $285 zone would still maintain the bullish structure. This level sits just above the former range high that previously acted as resistance.
Current liquidation data shows magnetic zones at $320 and $305 in the short term. These areas may see increased volatility as positions get squeezed.
AAVE forced a bullish market structure break on May 8th and has maintained higher lows since then. The recent range formation allowed for momentum reset while building liquidity.
