Aave (AAVE) is showing early signs of recovery after a sharp pullback, as price action shifts focus back to key resistance levels.
At the time of writing, Aave was trading at $163.95, registering a 0.37% increase in value in the past 24 hours. The token registered a trade volume of $312.64 million in the past 24 hours and has a market capitalization of $2.52 billion, accounting for 0.08% of all cryptocurrencies in circulation.
Recently, Crypto TXG highlighted that AAVE has made a sharp downward move as it could not maintain key support levels. As a result, the price fell below $180 and $166, causing further selling pressure.
However, the downtrend slowed when the price approached the zone of $146.5, where buyers managed to protect the level. Token later spent several days rising above the level before rebounding.
Following this rebound, AAVE is now testing the resistance area around $166, a region that previously served as a support area. A decisive break above this region could provide a catalyst for a return towards the $180 region, a marked upside target.
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On the daily chart, AAVE entered a clear downtrend after failing to hold above the $261.98 level earlier. This makes the current price drop to as low as $144.61. After that stunt, this token has maintained a balance around a support level of $144.61 to $157.43. AAVE maintains attraction for buyers around this support level.
The current support zone has now become a very important region. As long as AAVE holds above it, another advance may be attempted. However, it will not be possible for a stronger trend correction at any level without a breakout above $202.53. It has been identified as a prominent level on the chart.
Then again, if the price cannot move beyond and instead makes a lower high below $202.53, bearish selling may re-emerge. In this case, breaking below $144.61 could bring token into another downturn, with the next significant level of support being near $124.79.
For the time being, token finds itself at a technical juncture. The struggle between areas of support in the vicinity of the mid-$150s and the level of resistance between $166 and $180 will likely prove to be the determining factor in the next significant movement.
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