Key Takeaways
AAVE shows bullish potential with a ‘supertrend’ buy signal, cup and handle breakout, and falling exchange reserves. Clearing $330–$345 resistance could trigger a rally toward $360 despite sell-side pressure.
Aave [AAVE] just flashed a weekly ‘supertrend’ buy signal—the same one that preceded rallies of 870% and 400% in earlier cycles.
Hovering near $318 at press time, AAVE appeared to be following a familiar bullish path, especially as this signal emerges near a multi-month breakout zone. Historically, this indicator has marked the start of major upside movements.
Therefore, its reappearance at this crucial point adds weight to the bullish narrative, potentially positioning AAVE for another parabolic surge if buyers sustain pressure beyond local resistance levels.
Will AAVE’s textbook cup and handle pattern fuel the next breakout?
AAVE recently confirmed a textbook cup and handle pattern, typically seen as a reliable bullish continuation signal.
The breakout occurred above the $308 neckline, with press time price action steadily approaching the next resistance at $339.
This structure often precedes sharp upward movements, especially when accompanied by increasing volume and momentum. Moreover, the pattern’s symmetry and duration reflect strong accumulation phases.
Therefore, the formation provides a technically solid foundation for further upside, particularly if AAVE manages a decisive push above the $339 resistance level.
Source: TradingView
Is the 3.79% drop in exchange reserves a bullish sign?
On-chain data revealed that AAVE’s Exchange Reserve in USD value has declined by 3.79%, and was sitting at $754.37 million, as of writing.
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.
Could persistent sell dominance slow AAVE’s momentum?
Despite bullish technical setups, the Spot Taker CVD over 90 days remained in a “Taker Sell Dominant” state at press time.
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.
Will liquidation clusters above $330 and $345 trigger a breakout rally?
According to CoinGlass’ 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.
