- AAVE surged 30% in just four days after breaking out of a three-week range, fueled by strong technical momentum and Bitcoin’s concurrent rally.
- With key resistance levels at $320 and $332, a pullback to $285–$300 could offer a prime buying opportunity before the next leg up.
Aave, the porpulary known decentralized lending protocol is ramping up its aggressive bullish moves after taking the crypto market by storm with its 30% surge. Notably this surge took place in just 4 days.
When something like this happens, most times than not the token is bracing up for a potential breakout. This could significantly see the digital asset push prices towards the $300-$320 range.
Technically, this surge comes after a three-week consolidation phase, where AAVE formed a short-term range between $240 and $280 before finally breaking to the upside.
On June 6, AAVE tested the range low near $240, which acted as a strong support level. This retest marked the beginning of a powerful uptrend, further supported by broader market tailwinds, most notably, Bitcoin’s rally from $105.5K to $110.5K.
Currently, AAVe is still trading on the green at a market price of $312.23. This market value is a result of a 7.60% and an 18.30% surge in the past 24 hours and week respectively.
Notably, key resistances is looming at $320 and $332.
What’s Fueling the Rally?
First, AAVE’s breakout is part of a larger bullish structure that began forming after the token bottomed out in April. After losing all the gains from its November–December 2024 surge (from $125 to $399), AAVE reversed course and broke a bearish market structure on May 8, beginning a slow but steady climb.
The range formation between $240 and $280 helped the token build liquidity, allowing traders to reset momentum and accumulate positions. Once the $240 support held firm, buyers rushed in, fueling the current surge.
Indicators confirm this strength. The On-Balance Volume (OBV) shows sustained demand, and the Relative Strength Index (RSI) continues to signal bullish momentum, with no signs of bearish divergence to date.
Liquidation Zones Support More Upside
According to Coinglass liquidation heatmaps, a significant cluster of short liquidations was visible around the $280 and $295-$300 levels. AAVE’s recent price action wiped out these shorts, adding fuel to the rally.
The 1-month heatmap highlighted areas of liquidation interest at both extremes of the former range — levels that AAVE has now cleared. In the short term, price action is eyeing $320 and $332, with possible pauses as traders take profit or new shorts enter the market.
Is $300 the New Floor?
Despite the rapid price ascent, analysts suggest a retest of the $300 or $285 zones could offer attractive entry points for swing traders. These areas coincide with the former range highs and would allow momentum to cool before another leg upward.
If buying pressure persists and Bitcoin continues its bullish momentum, AAVE could realistically test the $320-$332 resistance zone and potentially break higher, with $350 and $399 as the next medium-term targets.