AAVE Price Prediction: Indications of a Deeper Drop Possible

Jakarta, Pintu News – This week, Aave (AAVE) had shown promising gains by successfully crossing the critical resistance at $280. However, Bitcoin (BTC) price rejection at $110,000 and market fear made AAVE slip back towards $260. Further analysis suggests that AAVE may see a deeper drop to the $260 and $240 support levels.

AAVE Price Movement Analysis

On the weekly chart, it is clear that AAVE experienced a rapid rally last November, but was followed by an almost equally rapid decline in the first quarter of 2025. This decline brought the altcoin’s price back to a low of $125, erasing all the gains it had made. This is bad news for long-term investors.

The chart shows that a price range between $125 and $380-$400 is likely to form in the coming months. The potential midpoint of this range, at the $262 level, has been a key resistance over the past month. At the beginning of the week, AAVE seemed to have managed to break out of the resistance decisively.

Prices jumped from $253 on Monday to $325 on Wednesday, a gain of 28%, before falling back to $275 before the week ended. A weekly session close above $280 would be a positive signal for the following week. The On-Balance Volume (OBV) indicator has shown an upward trend since April, an encouraging factor for AAVE fans.

Read More: Company’s Bitcoin Accumulation Strategy Threatened, Stock Falls!

Market Dynamics and Trading Volume

On the daily chart, the formation of a price range between $240 and $280 is becoming clearer. On Friday, the price tested the middle support at $260 again. Although there were breakouts on Monday and Tuesday, prices fell back into the range. The high trading volume over the past few days, when the price also fell, could be an indication of a large selling volume and bearish dominance, an indication confirmed by the OBV. The volume indicator recorded a new low compared to the last three weeks.

Investment Outlook and Strategy

Despite the retracement back into the range, not all hope is lost yet. AAVE’s structure still shows bearishness, however, the 20-day Moving Average (DMA) and 50 DMA show bullish momentum and should serve as dynamic support levels when retested, especially the 50 DMA. Therefore, investors can wait for a drop to $240 to buy more AAVE. The confluence of the lower range extreme and 50 DMA should be able to fend off bearish attempts to resume the downtrend.

Conclusion

Although AAVE experienced some recent price turbulence, technical indicators suggest that there are still opportunities for recovery. Investors are advised to monitor critical support levels and utilize any price declines as an opportunity for accumulation. With the right strategy, the current volatility can be utilized for long-term gains.

Also Read: Metaplanet Reaches 10,000 BTC Target: What Does It Mean for the Future of Cryptocurrency?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• AMB Crypto. Aave Price Prediction: All About the Possibility of the Altcoin Falling Once Again. Accessed on June 17, 2025
• Featured Image: Beamstart