AAVE Price Hits Resistance at 200-Week EMA Amid Mixed Supply Dynamics

The price of AAVE is recovering on the weekly chart and has flipped both the 20-week and 50-week EMA levels. The token is now testing its 200-week EMA band, which stands as a significant resistance level.

If this resistance breaks, it could lead to a more sustained recovery for AAVE, with potential upside targets near $240 and $340 over the coming months.

However, the supply dynamics of AAVE are mixed. A burn was discussed on September 29, but no proposal or timeline has been published yet.

Meanwhile, exchange-held AAVE has risen roughly 12% between September 16-28 to a 60-day high, even as price climbed around 24%. This development limits the potential for a clear bullish supply squeeze.