AAVE Drops 86% From ATH; Can This Key Support Zone Trigger a $1,000 Rally?

TLDR:

• AAVE is trading around $124, sitting above a major support zone between $90 and $110 on the weekly chart.
• A multi-year ascending trendline active since 2021 converges with the 0.618 Fibonacci level at current prices.
• Price is compressing between descending resistance and rising support, signaling a potential breakout is approaching.
• Upside targets range from $190 to $1,000, representing a 10x return from the base of the accumulation zone.
  

AAVE is currently sitting at a critical support zone following an 86% decline from its all-time high. The DeFi token is trading around $124, holding above a major weekly trendline that has remained intact since 2021.

Analysts are now watching whether this level can sustain buying pressure and trigger a larger recovery. Crypto analyst CryptoPatel has outlined a detailed technical case suggesting a potential 10x move from the current accumulation range.

Price Holds Above Key Support as Accumulation Signs Emerge

AAVE is trading above a high-timeframe support zone between $90 and $110. This range has attracted considerable attention from technical analysts tracking the asset’s long-term structure.

The zone aligns with a multi-year ascending trendline, adding weight to its relevance as a demand area.

CryptoPatel flagged the setup on social media, stating that price is showing a “liquidity sweep and reaction from a multi-year ascending trendline that has held since 2021.”

That trendline converges with the 0.618 Fibonacci retracement level, forming a strong area of technical confluence. Together, these factors point to a historically significant support region for the asset.

Beyond the trendline, price action is compressing between a descending resistance level and rising support. This type of compression pattern often builds tension before a directional move. Traders are watching closely to see which side resolves first.

10x Targets in Focus as Breakout Conditions Take Shape

The $74 level stands as the line in the sand for bulls. A weekly close below that price would cancel the bullish scenario outlined in the analysis. As long as AAVE holds above that threshold, the setup remains technically intact.

CryptoPatel mapped out a series of upside targets starting at $190, followed by $345, then $579, and eventually $1,000 or more.

These levels represent roughly a 10x return calculated from the base of the accumulation zone near $90. Each target corresponds to a technical resistance level identified on higher timeframes.

The analyst described the current range as trading between the 0.618 and 0.786 Fibonacci support levels, calling it a “generational accumulation range before massive expansion.”

This Fibonacci band is commonly associated with deep retracements that precede strong recoveries in trending assets.

Whether AAVE confirms this pattern depends on price holding current support and broader market momentum supporting a DeFi recovery.

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