Aave Price Structure Hinges On Crucial $145 Level — Here’s How

Overview

The cryptocurrency Aave (AAVE) has recently experienced a significant price decline, falling nearly 10% to a local bottom of around $153. As it currently trades within a range of $155-$160, market analysts are observing a critical price structure that may lead to a breakout, particularly focused on the $145 support level.

Current Price Action

The recent downturn in Aave’s price coincides with a broader decline across the cryptocurrency market. Following this trend, AAVE has been trading within a falling wedge formation, a chart pattern often indicative of consolidation after sustained selling pressure. This pattern is characterized by a series of lower highs and a stable support level, which in Aave’s case is near the $145 region.

Market expert Ali Martinez highlighted the AAVEUSD 4-hour chart, noting that the price action has formed a significant descending structure since Aave’s peak above $350. This corrective move has seen AAVE step down through various horizontal support levels at $240, $200, and $162. The loss of these critical zones has shifted short-term momentum firmly into the hands of sellers, making the $145 support level increasingly vital for future price direction.

Currently, Aave’s price hovers in the mid $150s, leaving little room before a potential retest of the $144.93 support. This level has demonstrated its importance as a demand zone multiple times during the ongoing downtrend. If the price breaks cleanly below $145, it could trigger an accelerated downside move, with the next major support level identified around $125.

Conversely, maintaining the $145 support may set the stage for a technical rebound. If Aave successfully defends this level and breaks above the descending trendline, it could potentially reclaim higher resistance zones around $162 and possibly $200 in the future. While such a rebound would not immediately negate the larger bearish trend, it could indicate a shift toward improved market balance and reduced selling pressure.

From author

The analysis of Aave’s current price structure underscores the volatility and uncertainty that can characterize the cryptocurrency market. As traders closely monitor the $145 support level, the potential for either a rebound or further decline remains a critical focal point. The falling wedge pattern provides insights into market sentiment, suggesting that while sellers have had the upper hand, buyers are poised to defend key support levels.

Impact on the crypto market

• Aave’s performance is reflective of broader market trends, emphasizing the interconnectedness of cryptocurrencies.
• The $145 support level serves as a critical point of interest for traders, influencing market sentiment and trading strategies.
• The potential for increased volatility in Aave’s price may lead to significant trading activity in the coming sessions.
• A break below $145 could signal further bearish pressure not only for Aave but potentially for other altcoins as well.
• Conversely, a successful defense of the $145 support could inspire confidence among traders, potentially leading to a broader market rally.