AAVE Eyes $1,000 as Consolidation and Accumulation Patterns Emerge

AAVE has re-entered market discussions after sustaining an approximately 86% decline from its all-time high on Monday, January 16, a correction that rivals the deepest pullbacks among major DeFi tokens. 

According to the crypto analyst Crypto Patel, the asset is currently trading near $124, stabilizing above a widely observed higher-timeframe support region between $90 and $110, where analysts suggest longer-term accumulation interest may be emerging.

Javon Marks emphasizes price compression factors, including descending resistance levels that compress against rising structural support levels. 

It is worth noting that market technicians often quote $74 as a major price level that, if broken, will invalidate bullish sentiment, while a strong defense of the $90-$110 demand zone will likely add credence to re-accumulation and a volatility expansion phase.

Also Read: Aave’s $6 Million Buyback Surge Sparks Fresh Upside Hopes for AAVE Token

AAVE Eyes $190–$1,000 Potential Amid Market Consolidation

Bullish predictions and projections among traders indicate that the token will rise to $190, $345, and $579 if its momentum returns. 

Higher projections suggest that the token will rise to the psychological $1,000 mark, representing almost a tenfold increase from the lower accumulation band. However, these projections depend on the general market conditions and liquidity.

Source: Crypto Patel X Post

The current situation with AAVE indicates another well-known crypto market cycle, which involves deep corrections and then the consolidation phase at historically important demand levels. 

The direction in which the AAVE market will go, whether it will be positive or negative, will depend on how the market sentiment responds, especially to Bitcoin and DeFi Cap rotation.

Momentum Indicators Point to Mixed Optimism

According to TradingView, as of Monday, February 16, the price received support at $93-$95 and began its steady climb upward. From February 11, the market began an upward trend, making a high at $130 before coming back down to around $127.10. 

The candles indicate a mix of bullish and bearish action, but overall, the trend has been upward since mid-February, indicating buying action and a possible continuation of the rally.

The technical indicators show mixed momentum. The token’s RSI (14) stands at 59.76, which is lower than its 63.48 moving average. This shows that the token has moderate bullish momentum, though it is not overbought. 

The MACD line is at 2.66575, which is lower than the MACD signal line at 3.30715. The MACD histogram is slightly negative at -0.64141, which may suggest that the token may pause for a while.

Also Read: Grayscale Files AAVE ETF, Boosting Competition in DeFi Investment Market