- Aave price stalls two-day winning streak, reversing from a 50-day SMA at the three-week high.
- Clear upside break of multi-month resistance, sustained trading beyond eight-week support, and sluggish momentum test AAVE bears.
- News of Bybit, Mantle, and Aave’s collaboration impresses DeFi watchers.
- AAVE faces the first yearly loss in three as long as the price stays below the 200-day SMA.
Aave (AAVE) price faces the first daily loss in three as it reverses from the 50-day Simple Moving Average (SMA) after hitting a three-week high, down 2.0% to $194.00 early Thursday morning in New York.
In doing so, the altcoin traces broad consolidation in the crypto market ahead of the key U.S. data/events, especially when the U.S. Dollar bounces off a multi-week low.
Read More: Crypto Digest: Bitcoin Climbs to 93K as Softer Jobs Data Fuels Fed-Cut Hopes
Still, sluggish signal from the Directional Movement Index (DMI) momentum indicator, Wednesday’s breakout of multi-month resistance, and a sustained trading beyond an ascending support line from October challenge the AAVE bears.
Apart from that, sluggish trading volume and a pullback in the market capitalization (market cap) also raise doubts about the Aave price pullback. According to Santiment, Aave’s daily trading volume hits a four-day low of $271.29 million while the market cap retreats from a three-week high to $2.95 billion by press time.
On a fundamental side, the early-week news suggesting collaboration between Aave, Mantle, and Bybit looks like a strong positive for the Aave price. “Bybit, the world’s second-largest cryptocurrency exchange by trading volume, and Mantle, the high-performance distribution and liquidity layer for real-world assets, announced a strategic partnership led by TokenLogic with Aave to advance decentralized finance (DeFi) accessibility and unlock new on-chain liquidity channels for users worldwide,” per Bybit.
With this, Aave’s recent pullback poses a lesser threat to the bullish signals flashed earlier in the week, even as the altcoin looks set for the first yearly loss in three.
Aave Price: Daily Chart Suggests Gradual Run-Up
Aave’s latest U-turn from the 50-day SMA falls short of attracting the bears as the altcoin still defends the early-week breakout of a descending resistance line from August 23, now support near $186.00.
Also, sluggish signals from the DMI momentum indicator and a sustained trading beyond an eight-week ascending support line, close to $168.00 at the latest, also raise questions about the quote’s further downside.
That said, the DMI’s the Average Directional Index (ADX, red) line tops the Downmove (D-, Orange) and the Upmove (D+, Blue) lines, but the D+ recently crossed over the D- and marked seller’s resistance. Meanwhile, all three lines are below the 25.00 neutral limit and hence portray a lack of clear directional momentum.
With this, the AAVE sellers are likely to find hardships, at least beyond $168.00 support.
Even if the quote breaks the $168.00 mark, the 23.6% Fibonacci retracement of its downturn from December 2024 to October 2025, near $157.00, could test the AAVE bears before November’s low of $149.00.
Following that, the altcoin’s slump toward April’s bottom of $114.00, the $100.00 threshold, and October’s yearly low of $81.83 can’t be ruled out.
Alternatively, the Aave price could witness fresh upside momentum on clearing the 50-day SMA hurdle of $200.40. Also acting as a short-term resistance is the 38.2% Fibonacci ratio of $203.50.
If AAVE bulls keep their reins past $203.50, the 50% Fibonacci ratio of $241.00 and the 200-day SMA near $264.00 could flash on their radars.
Beyond that, the 61.8% and 78.6% Fibonacci retracements, close to $278.00 and $332.00, as well as the $300.00 threshold, might attract the Aave buyers.
Aave Price: Four-Hour Chart Highlights $218.00 Hurdle
On the four-hour chart, Aave price defends the 200-bar SMA breakout amid the bullish DMI signals, with the D+ line topping all other indicators and staying well past the 25.00 neutral limit, suggesting short-term upside momentum.
However, a downward-sloping resistance line from August 23, close to $218.00, guards immediate AAVE upside before giving them control and directing the moves toward the daily chart’s higher levels.
Meanwhile, Aave sellers need a clear break beneath the 200-bar SMA support of $188.00 and a week-long support line near $168.00 to retake control. Even so, deeper levels discussed on the daily chart stand tall to challenge the AAVE bears.
Conclusion
Aave price pullback lacks validation from both technical and fundamental sides, suggesting the quote’s recovery moves ahead. Still, the altcoin looks set to face its first yearly loss in three.
Also read: Cryptocurrency Weekly Price Prediction: Is BTC, ETH, and XRP’s Rebound Reliable?
