Why AAVE’s Price is Like a Rollercoaster – Hold on Tight! 🎢

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  • In a spectacular display of market drama, AAVE‘s breakout was met with a flurry of selling, sending it tumbling back below the mystical $280 threshold.
  • Rumor has it that the price might just decide to take a leisurely stroll down to $240 in the upcoming week. How delightful! 🙄

At the time of this literary endeavor, Aave [AAVE] had managed to defy the odds and break through the critical resistance at $280, much to the surprise of absolutely no one who has ever watched a soap opera. In a plot twist worthy of the finest intergalactic dramas, Bitcoin [BTC] decided to reject the idea of reaching $110k, causing AAVE to lose a significant chunk of its recent gains. Who knew cryptocurrencies could be so dramatic?

While the altcoin appeared to be riding a wave of bullish momentum, it seems that a detour to the $260 and $240 support levels might also be on the itinerary. Buckle up, folks!

AAVE’s Price Action: A Long-Term Love Story? 💔

The weekly chart is a tale of two extremes: a rapid rally last November followed by a swift decline in Q1 2025. It’s like watching a balloon float up only to be popped by a particularly enthusiastic cat. This downtrend took the altcoin’s price back to the $125 low from before the rally, effectively wiping out 100% of the gains. Not exactly the fairy tale ending long-term investors were hoping for!

Thus, the weekly chart suggests a potential range formation between $125 and $380-$400 in the coming months. The 50% level at $262 has been a key resistance, much like that one friend who always insists on picking the restaurant.

Earlier this week, the altcoin appeared to break out cleanly, surging from $253 on Monday to a dizzying $325 on Wednesday—a 28% rally! But alas, it fell back to $275 before the week could end, proving once again that what goes up must come down, especially in the world of crypto.

A weekly session close above $280 would be a positive sign for the coming week, like finding an extra fry at the bottom of the bag. The OBV has been trending higher since April, which is a glimmer of hope for AAVE bulls. 🐂

The range formation (in white, for those who enjoy a bit of color coding) was clearer on the 1-day chart. It stretches from $240 to $280, having retested the $260 mid-point support on Friday. The breakout last Monday and Tuesday morphed into a retracement back into the range, like a boomerang that just doesn’t know when to quit.

Trading volume has been high over the past few days, even as the price was falling. This could indicate heavy selling volume and bearish dominance, a clue that the OBV confirmed. The volume indicator made new lows compared to the past three weeks, which is about as encouraging as a rain cloud on a picnic day.

Despite the retracement into the range, all hope is not lost! The structure of AAVE remains bearish, but the 20 and 50 DMAs are signaling bullish momentum. They should serve as dynamic support levels upon a retest, especially the 50 DMA, which is like that reliable friend who always shows up with snacks.

So, investors might want to wait for a drop to $240 to buy more AAVE. The confluence of the lower range extreme and the 50 DMA should ideally fend off any bearish attempts to continue the downtrend. Fingers crossed! 🤞

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2025-06-16 10:21