AAVE Breaks Above Key Resistance

AAVE has successfully broken above its descending wedge formation, indicating bullish price action.

The protocol’s governance update, whale accumulation, and a $1M weekly buyback proposal suggest bullish market sentiment.

Aave (AAVE) has gained attention following an 11.78% surge, now trading at $232 according to CoinMarketCap. On-chain signals hint at a potential uptrend rally if bullish momentum is maintained.

Price Action and Technical Indicators

AAVE has been trading within a descending wedge since early 2025. The coin tested its descending resistance trendline multiple times until achieving a breakout and price consolidation above the critical $220 resistance level.

WorldOfCharts’ analysis indicates a possible rally towards the $258 key resistance level mid-term, aiming for the $350 psychological level in the long run. The Relative Strength Index (RSI) stood at 49, indicating potential for further buying at press time.

Short-term and long-term moving averages, the MACD, and momentum indicators are signaling a ‘buy’, reinforcing the breakout’s strength.

On-Chain Insights Supporting AAVE’s Price Action

According to IntotheBlock data, large holders own 80% of AAVE, with 56% currently profiting. As most whales are in profit, this may lead to additional investor accumulation and buying pressure towards the $258 resistance.

Aave recorded large transactions (over $100k) amounting to $903.66 million in the past week as renewed interest surged among traders. Daily transactions have steadily increased alongside active addresses, indicating growth in network activity.

Market Outlook

The Aave protocol introduced a $1M weekly token buyback under its new ‘Aavenomics’ proposal, aiming to reduce AAVE’s supply. This supply decrease may facilitate a bullish momentum following its breakout.

The 24-hour long-short ratio increased from 1.4 to 1.5 in four hours, suggesting more traders are buying AAVE. The breakout signals a trend reversal after a prolonged downtrend, driven by governance updates and strategic announcements.

Large investors are likely to invest in AAVE for long-term benefits, with strong buying pressure potentially pushing the coin above the $258 resistance en route to $350. Monitoring whale and network activity at key levels could offer deeper insights into AAVE’s price movements.