- AAVE trades near critical support as the descending triangle structure tightens and volatility expectations increase across short-term timeframes.
- Revenue growth diverges from price performance, suggesting protocol usage expands despite sustained market weakness.
- Technical levels point to downside risk if support fails and limited upside unless resistance breaks.
AAVE price analysis shows the token approaching a critical decision point as technical pressure builds around a long-forming descending triangle. Price behavior reflects sustained selling momentum, while revenue trends point to growing protocol activity. Traders now monitor defined support and resistance levels for directional confirmation.
Descending Triangle Signals Market Compression
The daily chart shows AAVE trading within a descending triangle from late December through early February. Lower highs continue forming along a declining trendline.
Horizontal support remains stable near the $144.93 zone. This pattern reflects tightening volatility and reduced directional clarity.
Several price levels stand out as historical reaction zones. Resistance appeared near $206.80 and $180.38 during earlier rebounds.
Another key level formed around $153.77 before the price returned to consolidation. These zones now guide short-term technical expectations.
The narrowing range suggests that momentum is building for a decisive move. Price action remains constrained between trendline resistance and horizontal demand.
Breakdown and Recovery Scenarios: Define Key Levels
Support at $144.93 continues to act as the primary defense for buyers. A confirmed breakdown below this level would expose the next support zone near $125.82.
This area aligns with prior consolidation visible on the chart. Technical models project further weakness if selling volume increases.
Another downside projection identifies a deeper target near $103.45. This level appears in the red zone beneath the triangle base.
The setup favors continuation of the broader downtrend under current conditions. Short-term momentum indicators remain tilted toward selling pressure.
On the upside, resistance is defined near $156.93. A breakout above this zone could allow the price to test $161.74 in the green target area.
However, the 50-day, 100-day, and 200-day moving averages sit above the current price. These averages act as layered barriers limiting recovery potential.
Revenue Growth Diverges From Price Performance
A longer-term comparison chart links AAVE’s price with protocol revenue from 2021 through early 2026. In 2021, both metrics surged as market participation expanded.
Price later declined sharply during 2022 and 2023. Revenue also softened but avoided the same scale of contraction.
From late 2023 onward, revenue began trending higher while price remained range-bound. The chart shows steady revenue growth through 2024 and into 2025.
This divergence suggests stronger protocol usage despite weak market valuation. Price has not yet reflected these operational gains.
Revenue growth adds context without changing the immediate technical bias. Traders await a confirmed break to determine the next directional phase.
