Aave [AAVE] has staged a strong breakout from its recent short-term range, signaling renewed bullish momentum. Earlier indications of sustained buying pressure have played out, with AAVE rallying nearly 30% in just four days after briefly dipping to retest support at $240.
At the time of writing, AAVE is trading at $313, inching closer to key resistance levels at $320 and $332. Market watchers are closely monitoring these zones, as a successful breach could open the door to higher targets. However, a short-term retracement toward the $300 mark—or even the previous range high of $280—may present attractive buying opportunities for swing traders.
The bullish case for AAVE is supported by historical price action. In late 2024, the altcoin surged from $125 to $399. Although it fully retraced those gains by April 2025, Aave has since shown signs of recovery. The altcoin broke its bearish market structure on the daily timeframe on May 8, laying the groundwork for the current uptrend.
Consolidation between $240 and $280 allowed AAVE to build liquidity and reset its momentum. This range formation created a foundation for the breakout, which coincided with Bitcoin’s rally from $105.5K to $110.5K—further fueling bullish sentiment across the altcoin market.
On-chain indicators reinforce the bullish outlook. The On-Balance Volume (OBV) shows consistent accumulation, and the Relative Strength Index (RSI) maintains bullish momentum with no signs of bearish divergence. Moreover, a one-month heatmap highlighted liquidation clusters near the $240 and $280 zones—suggesting that the recent breakout cleared significant short positions.
The 3-day heatmap also revealed brief consolidation around $290 before pushing higher, driven by liquidations in the $295–$300 area. Currently, $305 and $320 act as magnetic price zones, with $285 presenting a potential re-entry point for bulls.
Also Read: AAVE Price Analysis: Can a Breakout to $240 Defy the Bearish Trend?
As Aave attempts to sustain its breakout, traders should monitor any new range formation. A healthy retracement could confirm continued bullish strength and offer strategic buying opportunities ahead of the next leg up.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
