AAVE Short Squeeze Fizzles: Will $133 Hold or Crush Bulls?

AAVE's price skyrocketed 17% in a single session, pushing above its Bollinger Band ceiling at $125. However, this surge is likely due to a short squeeze rather than organic buying momentum.

The recent move has left the entire moving average stack in the dust, and AAVE tends to lag Bitcoin and ETH breakouts before overcorrecting violently when it catches up.

Traders tracking DeFi rotations will recognize this as the classic 'DeFi beta catch-up' move that follows a sustained L1 rally.

Momentum has gone vertical but is already sputtering, with AAVE trading 10% above its upper Bollinger Band. The RSI at 81 indicates overbought conditions, and the MACD histogram is flat, signaling neutralizing buying velocity.