AAVE Price Bounces as Bearish Momentum Fades Near $85
AAVE's price has been stuck beneath major moving averages at $86.99, but analysts believe that bearish momentum is waning and smart money is already buying up shares. The protocol's technical reality check reveals a full bearish waterfall structure, with every single moving average sitting above the current price.
The selling engine has run dry, with the MACD histogram printing at zero, indicating that the sell-side has stalled and is no longer adding fuel to the decline. Meanwhile, the RSI at 41 sits in neutral territory, while the stochastic oscillator has pushed into deeply oversold territory, signaling a potential bounce.
Blockchain.news notes that the derivatives market is pricing a bounce, with institutional and whale accounts positioned nearly 58% long, and professional desks starting to cover their shorts. The absence of noise from influencers and the hype premium being wrung out also suggest that this is an environment where institutional accumulation can run clean.
The foundation case for AAVE as a lending protocol remains intact, with it having survived multiple market cycles and exploits in the broader sector. Analysts predict a bounce to $92-$95 within the next 7-30 days, with a base case probability of 55%. However, if spot sellers return with volume and $85.21 flips from support to resistance, the bear case scenario of $80 becomes more likely.