- AAVE consolidates near $150 support, with potential breakout targeting $240 if buyers hold momentum.
- Short-term trend remains bearish, facing rejection at $162.54, with key support at $154 and risk of decline.
- Market reactions at liquidity zones will determine direction, with $159 as a crucial pivot for trend reversal.
AAVE has been trading within a structured range after a prolonged downtrend, forming lower highs and testing support zones. The price action suggests critical areas where traders are monitoring liquidity and potential breakout levels.
Market Structure and Key Zones
The current trend is one of AAVE being tested with a series of attempts and failures to penetrate significant resistance points. The coin has not been able to maintain momentum, and traders are looking into whether there is accumulation before a possible reversal.
Scient, a prominent analyst, claims AAVE has been trading close to the level of $150, which is a key support level. He has also explained more about the Wyckoff accumulation pattern and has marked out the key zones of liquidity. His analysis predicts a potential breakout to the level of $240 resistance if the price remains above the mid-range level.
Source: Scient
Scient also pointed out that a failure to hold above $150 could lead to further downside. A shaded red area on the chart represents a stop-loss zone, indicating a key risk management level. Liquidity buildup in this range suggests market players are awaiting confirmation before initiating positions.
Additionally, volume data indicates that liquidity may be shifting, with a possible spring-like movement signaling an upcoming price reaction. AAVE’s response to these levels will define the next major price direction in the market.
Short-Term Bearish Trend and Liquidity Gaps
Reed Carson has presented a comparative analysis, focusing on the short-term market structure of the $AAVE price. He has identified a descending trendline acting as dynamic resistance, further reinforcing bearish pressure. His analysis shows multiple break-of-structure (BOS) points, confirming the continuation of a downtrend.
He has provided additional insights into Fair Value Gaps (FVG), noting inefficiencies in price action that may attract liquidity. The price attempted to reclaim the $162.54 zone but faced rejection, leading to another bearish move. The analyst also pointed out that the lower FVG zone around $154 serves as immediate support.
Source: Reed Carson
Carson has emphasized that if AAVE loses the $159 level, a decline toward $128 could occur. However, he also noted that buyers could step in at this range, creating a potential rebound opportunity. Market participants are closely watching how the price reacts at these critical levels.
According to him, the upcoming sessions will determine whether sellers maintain control or if a structural shift occurs. Traders are evaluating potential entries based on liquidity positioning and market reactions at key support and resistance zones.
