- AAVE grinds into wedge resistance at $270, with CJ expecting a healthy pullback toward $210 before the next leg higher.
- Analyst CJ sees a retracement holding above $160–$170 as key to preserving the bullish structure that started in early May.
- AAVE price consolidation between $180 and $200 could trigger a breakout, with CJ targeting a long-term upside move toward $420.
AAVE has staged an impressive recovery from April lows, forming a bullish structure with rising momentum. However, signs of resistance around $270 suggest a potential short-term pullback before continuation.
Technical Structure Indicates Rising Wedge Behavior
AAVE’s price structure on the daily timeframe reveals a rising wedge, a common pattern that precedes market corrections. From a broad accumulation zone between $110 and $150, the token surged, reclaiming prior resistance levels and forming a series of higher highs. This move has created upward pressure, but the proximity to diagonal resistance raises caution.
A recent assessment by market analyst CJ indicates that the bullish trend remains intact despite near-term resistance. CJ has provided insights into the ongoing structure, emphasizing the interaction with diagonal resistance levels. According to CJ, while the AAVE price is showing strength, it continues to grind into the wedge’s upper boundary near $270.
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This behavior, CJ notes, frequently precedes a pullback as momentum weakens against rising resistance. He believes a retracement may occur toward the $210–$237 zone, forming a higher low. In his view, such a move would preserve the bullish structure while offering a favorable reentry point for long setups.
The projected move doesn’t imply a trend reversal but rather a healthy market correction within an ongoing uptrend. CJ has presented a detailed analysis that emphasizes structure rather than immediate breakout attempts. This retracement path allows AAVE price action to reset, while still aligning with the broader bullish trajectory that started in early May.
Analyst Eyes Critical Zones for Bullish Continuation
The analysis further outlines that the price must maintain strength above the $160–$170 level to avoid invalidation. This mid-range zone lies above the previous accumulation region and acts as a key structural pivot. Failure to hold here could open the door for deeper downside into the original demand area.
Moreover, CJ points out the importance of the $180–$200 consolidation range as a potential springboard. AAVE price stability in this region could mark the base for the next upward impulse. Should the structure remain intact, he projects a breakout leg targeting $420, a level untouched in recent months.
This upper target corresponds with horizontal resistance and reflects a continuation of the multi-month trend. The AAVE chart, as described, suggests that patient entries on retracement could yield significant upside if the structure holds. Traders are expected to monitor the $260–$270 resistance zone closely in the sessions ahead.
