Aave (AAVE) Bounces Off Key Support — Can This Pattern Trigger A Bullish Move?

Key Takeaways

• AAVE bounced strongly from channel support near $92.23, sparking a 13% rebound.
• Price is now testing the $129 area, with the 200-week MA at $137 as the next key hurdle.
• Holding above support keeps the bullish reversal in play.
• A move toward the $350–$360 zone becomes possible if momentum builds.
• A breakdown below channel support would invalidate the bullish setup.

The broader crypto market is finally showing signs of relief after the recent sell-off. Bitcoin has reclaimed the $70,000 level, while Ethereum surged above $2,100 this week — helping spark renewed risk appetite across altcoins.

Riding that wave, Aave (AAVE) jumped nearly 13%, trimming its monthly decline to around 25%. More importantly, its weekly chart is now flashing a potentially meaningful bullish setup that could shape the next leg of price action.

Descending Channel Pattern in Play

On the weekly timeframe, AAVE is trading inside a descending channel — a structure formed by two parallel, downward-sloping trendlines that often appears during extended corrective phases.

Recently, price swept the lower boundary of the channel near $92.23, where buyers stepped in aggressively to defend support. That reaction sparked the current rebound, pushing AAVE back toward the $129 zone and signaling a possible shift in short-term momentum.

This type of move is typical for descending channels: selling pressure weakens near the lower trendline, volatility starts to expand, and price begins rotating higher inside the structure — setting the stage for a potential recovery rally.

What’s Next for AAVE?

If bullish momentum continues, AAVE could soon challenge its 200-week moving average around $137. A successful reclaim of this level would be an important technical confirmation and could open the door for a move toward the upper boundary of the channel, which currently aligns near the $350–$360 region.

A breakout above that channel would significantly strengthen the bullish reversal thesis and likely attract fresh buyers looking for confirmation.

That said, this is still a technical bounce for now.

If AAVE fails to hold above current levels and slips back below the channel’s lower boundary, the bullish setup would be invalidated — potentially sending price back into consolidation or extending the broader downtrend.

Big Picture

With Bitcoin back above $70K and market sentiment slowly improving, AAVE’s bounce from long-term support comes at a critical moment. The descending channel suggests the token may be entering a volatility expansion phase, where sharper moves — especially to the upside — become more likely.

For now, bulls will be closely watching whether AAVE can reclaim the 200-week MA and continue rotating higher inside the channel. Until then, expect choppy price action — but the technical groundwork for a stronger recovery is clearly starting to form.