AAVE Could Still Drop : Here’s What to Watch Next

Despite AAVE's price breaking above the crucial $280 resistance, recent market fluctuations indicate a possible downturn ahead. Let's delve deeper into the future outlook of this DeFi token.

Written by Charles Ledoux

Translated on June 16, 2025 at 10:33 by Sarah

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Analysis of Current AAVE Price Trends

The altcoin AAVE has experienced a period of volatility following an unsuccessful breakout attempt. The recent market fluctuations, including Bitcoin’s correction to $104,000, have forced AAVE to drop to $260. Investors are now wondering if a further decrease to $240 is to be expected in the upcoming week.

Despite apparent upward momentum, a retracement to the $240 support levels remains possible for AAVE. The weekly chart highlights the rapid rally last November and the almost equally quick decline in the first quarter of 2025. This bearish trend brought the altcoin’s price back to the pre-rally low of $125, erasing all gains.

Price Outlook : Return to $300 or a Decline ?

Although AAVE’s long-term structure remains bearish, the 20 and 50-day moving averages signal a bullish momentum in progress. Therefore, investors may await a drop to $240 to buy more AAVE, anticipating that the dynamic support level of the 50-day moving average will ward off bearish attempts.

In the 2H chart, the token broke a bullish trendline and is currently undergoing a breakout. According to the FBB, the next target for AAVE is at $334. The RSI and the CMF indicate that traders have seized the opportunity presented by the recent market panic.

The weekly chart underscores the potential for a bullish formation with a minimum target of $456 in the coming months. The price has surpassed the FBB’s midline at $258, which has been a key support over the last month.

In conclusion, although the token’s structure appears bearish in the long term, investors can watch for a buying opportunity around $240 in case of a drop, relying on the 50-day moving average support to fend off selling pressure. However, AAVE seems poised not to provide this buying opportunity and to quickly regain $300.

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Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

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This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.

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