Aave (Aave) Recovers from Market Sell-Off, Targeting Resistance Levels

Aave (AAVE) recently faced a sharp decline, mirroring the broader market sell-off that triggered fear among investors and led to widespread losses across altcoins.

Aave (AAVE) has faced a rocky period, closely mirroring the broader crypto market trends. As pessimism set in and sparked a broader sell-off, several altcoins fell victim to persistent selling pressure.

Aave (AAVE) has faced a rocky period, closely mirroring the broader crypto market trends. As pessimism set in and sparked a broader sell-off, several altcoins fell victim to persistent selling pressure.

Among the tokens that faced this brunt was Aave, a prominent decentralized finance (DeFi) token. The token dropped to a recent low of $191 as market sentiment soured.

Among the tokens that faced this brunt was Aave, a prominent decentralized finance (DeFi) token. The token dropped to a recent low of $191 as market sentiment soured.

However, as the market found stability at a crucial support level and afterward began to regain momentum, Aave also initiated a recovery, attracting renewed attention from traders.

However, as the market found stability at a crucial support level and afterward began to regain momentum, Aave also initiated a recovery, attracting renewed attention from traders.

At the time of writing, AAVE is trading at $211.02, reflecting a 24-hour gain of 6.93%. Its 24-hour trading volume is $714.15 million, and it has a market capitalization of $3.18 billion, rendering a 0.11% market dominance.

Aave (AAVE) chart from the analysis

Aave (aave) chart from the analysis

Aave appears to be in wave iv of a larger five-wave uptrend, which began in 2022. This suggests that the token is still in a bullish cycle, especially if key support levels hold. However, there is still a risk of a deeper correction.

Crucial support for Aave lies at $107, and a break below this level could invalidate the token’s bullish structure, potentially exposing it to further downside. If Aave fails to maintain this long-term support, it could follow a pattern observed in several other altcoins: a three-wave top formation, which usually leads to prolonged struggles in reclaiming previous highs.

Aave must sustain its upward momentum to confirm a bullish continuation. If buyers maintain control, Aave could attempt to reclaim higher resistance levels. Conversely, a loss of support could see Aave retesting lower price zones, putting investor confidence to the ultimate test.

As the market volatility persists, traders will be closely monitoring Aave’s price action to determine whether this rebound marks the beginning of a sustained uptrend or serves as a temporary reprieve before further weakness sets in.