- AAVE price dropped under $300 after rejection from $336 resistance zone.
- Bears target $278 and $231 while bulls defend channel support since April.
- AAVE hits $3T lifetime deposits, securing its place among top DeFi protocols.
AAVE is at a crossroads after slipping below $300, caught between bearish rejection from $336 and bullish long-term fundamentals. Price action now hinges on whether the $278 support zone can hold against rising sell pressure.
Bears Take Control After $336 Rejection
AAVE’s latest rejection from $336 marked a turning point. According to data from Ali Charts via X , a bearish engulfing candle formed, flipping short-term momentum in favor of sellers. The asset slipped below $317 support and broke past the $300 level, settling near $296 on August 16.
This move followed a strong rally from late July, where price surged from $235 to $336. But the uptrend quickly lost steam after price failed several times at resistance. The structure then shifted, moving from higher highs and lows to lower ones, showing the market had entered a corrective phase.”
Immediate support lies at $290, but the $278 zone remains the key level to watch. A decisive break below $278 could expose $231, the early August swing low where strong buying once emerged. Unless price reclaims $317–$320, bearish pressure is likely to dominate in the near term.
Bulls Highlight Long-Term Uptrend
Not all analysts agree with the bearish scenario. Sjuul AltCryptoGems points out that AAVE has respected an ascending parallel channel since April 2025.Price has kept building higher lows within the channel, hinting that the bigger uptrend is still holding strong.
The analyst also points out three rounded bottoms around $160, $200, and $260, each fueling strong rallies..Each of these patterns sparked strong rallies, adding weight to the bullish setup.
Breaking above the $336 neckline could push AAVE toward $360 and even $400 — prices last seen in early 2024. To keep that chance alive, AAVE needs to stay above $300 and climb back to $336. If not, the token could get stuck trading between $280 and $320.
Strong Fundamentals Support Growth
While technicals are divided, AAVE’s fundamentals remain a bright spot. Reports confirm that the protocol has surpassed $3 trillion in lifetime deposits since 2020, making it one of the largest DeFi players by scale.
Active borrows have also hit a new record above $25 billion, while Coinbase’s Stablecoin Bootstrap Fund has injected liquidity into AAVE to strengthen capital markets.
