- AAVE has successfully broken above its descending wedge formation, as technical analysis allude to bullish price action.
- The protocol governance update, whale accumulation, and a $1m weekly buyback proposal suggest a bullish market sentiment.
Aave [AAVE] has caught the market’s attention following an 11.78% price surge and the protocol’s announcement of future growth strategies.
At the time of writing, it had gained substantial bullish momentum following its breakout and was trading at $232, according to CoinMarketCap data. On-chain signals suggest a potential uptrend rally if bulls hold strong.
Price action and technical indicators
AAVE has been trading inside a descending wedge formation since the start of 2025. The coin has tested its descending resistance trendline severally until a breakout and price consolidation above the $220 key resistance level.
According to WorldOfCharts’ analysis on X (formerly Twitter), it could rally towards the $258 key resistance level in the mid-term while targeting the $350 psychological level in the long run.
The coin’s RSI stood at 49, signaling room for more buying, at press time.
The short-term and long-term moving averages, the MACD, and momentum indicators flashed a ‘buy’ signal, strengthening the breakout.
Source: TradingView
On-chain insights supporting AAVE’s price action
According to IntotheBlocck data, Large holders control 80% of AAVE, with 56% of them in the money.
Since the majority of the whales are in profit, it could see further investor accumulation and buying pressure, leading to a bullish rally toward the $258 key level.
Source: IntoTheBlock
Aave’s large transactions (over $100k) have reached $903.66m in the past week as the coin faced renewed interest among traders.
The daily transactions have surged steadily alongside active addresses, showing growth in network activity.
Source: Artemis
Market outlook points to…
The Aave protocol announced a $1M weekly token buyback under its new ‘Aavenomics’ proposal, reducing AAVE’s supply. This decrease in supply could position the coin for a bullish rally after its recent breakout.
The 24-hour long-short ratio increased from 1.4 to 1.5 in four hours, showing more traders buying AAVE. The coin’s breakout signals a trend reversal after weeks of downtrend, boosted by governance updates and the protocol’s announcement.
Large-scale investors are likely to purchase AAVE, aiming for long-term gains. Strong buying pressure could help the coin surpass the $258 resistance and target $350.
Monitoring whale and network activity near key levels can provide further insights into AAVE’s price movements.
