AAVE Price Prediction: Pivotal Moment as It Tests Key Support of $194.25

AAVE, one of the leading decentralized finance (DeFi) protocols, is at a pivotal moment as it tests a key support level of $194.25, which could determine its next big move.

DeFi protocol AAVE is at a pivotal moment as it tests key support at $194.25, which could decide its next big move.

After recently pulling back from $199.36 to $194.25, traders will be watching for signs of a breakout or a potential decline. This price action is particularly interesting as it comes after a period of consolidation, and key market indicators suggest that the next price movement could be decisive for AAVE’s future direction.

Volume Profile Data Shows Key Support

The latest analysis of AAVE’s price action on the volume profile reveals some interesting observations. At $196.00, there is a strong level of support, indicating that the market is used to seeing prices at this range and has absorbed significant volume around this price point.

As AAVE’s price tested the $194.25 support zone, its significance becomes apparent, and the market seems to be reacting to hold at these levels.

Above, there is a potential breakout level at $199.36, which could signal a rally towards the next target at $210.00. This resistance has been an area of interest for traders, and surpassing it could ignite the candle for another leg of bullish momentum.

However, if the bears manage to sink AAVE below the $194.25 support, it could signal weakness, leading to a potential retracement to the $188.00 level, an area that has seen price consolidations in the past.

Surge in Investor Activity

AAVE’s recent exchange netflow statistics highlight a strong surge in investor activity, which may signal the potential for upward price movement.

The exchange netflow has seen a +583.2% increase over the past three months, with notable deposits impacting the market. From December 2024 to March 2025, netflows peaked at +98.78K AAVE, showcasing significant investor accumulation.

More recently, the 7-day netflow shift showed an increase of +4.54K AAVE, while the 30-day change reached +40.4K AAVE. This surge in netflow could provide the fuel for AAVE’s price to break through key resistance levels, potentially pushing the token toward $220.00 if the bullish momentum continues. However, a reversal in netflows could have the opposite effect, with AAVE heading back toward its $188.00 support.

Rising Speculative Activity

AAVE’s growing speculative interest is another factor adding to the tension in the market. The protocol’s open interest climbed from 270K to 282K coins, showcasing increased speculation among traders. This spike in open interest is commonly associated with rising volatility and can be a signal that traders are positioning themselves for a potential breakout.

The fluctuations in open interest are also noteworthy. After climbing to 282K coins, it slightly dipped back to 277.39K, indicating a slight pullback in speculative activity. A sharp rise in open interest could signal bullish sentiment and may push AAVE toward the $210.00 resistance. Conversely, if open interest falls below 270K, it could indicate a bearish shift in sentiment, leading to a possible decline toward $188.00.

Shifting Sentiment: Long/Short Ratios

The shifting market sentiment is further illustrated by AAVE’s Long/Short ratios, which show that long positions are currently dominating the market at around 60%. This suggests that investors are largely optimistic, which could support a breakout past the $199.36 resistance.

However, if short positions manage to increase their dominance to over 60%, it may indicate heightened selling pressure, potentially pushing AAVE lower toward the $188.00 support as liquidity at this level is tested.

Key Market Levels to Watch

To summarise, AAVE is at a critical juncture, with the $194.25 support and $199.36 resistance being key levels to determine its near-term price movement.

The rise in exchange netflows and speculative interest adds to the bullish narrative, but any failure to hold the $194.25 support could lead to further declines. As the market sentiment remains fluid, traders should keep an eye on these levels and any signs of shifting momentum.

The next few days could prove to be pivotal for AAVE’s market outlook.