AAVE Slips From Triangle: Is a Deeper Drop Next?

AAVE is no longer compressing, it has already broken lower. The recent price action shows a clear loss of momentum beneath a key descending resistance, shifting focus toward support rather than recovery.

Breakdown From Triangle Structure

According to the chart shared by crypto analyst GainMuse, AAVE/USDT has broken down from a well-defined triangle pattern that formed after a broader downtrend. The structure developed beneath a descending resistance line, reinforcing the bearish bias.

The triangle resolved to the downside after price approached the upper boundary and failed to reclaim resistance. The breakdown occurred near the $130 area, with price now trading around $125.99.

The chart highlights a major descending channel, with AAVE respecting the upper resistance trendline and recently testing the lower support boundary. A projected path suggests further downside toward a marked target zone near the $100–$105 region if weakness continues.

The key takeaway from the GainMuse structure is simple: lower highs persist, and the broader trend remains intact while price stays capped under the diagonal resistance.

Support Under Pressure

The 1-hour chart confirms the breakdown dynamics.

Price recently rebounded sharply from the $100 area earlier in the month, rallying back toward $130 before stalling. That bounce, however, failed to establish higher highs, and momentum flattened as price returned toward $125–$126.

Volume shows spikes during the initial rebound phase, but follow-through buying pressure has weakened. The current consolidation sits directly beneath the former triangle support, which now acts as resistance.

Immediate support sits near $120, followed by the stronger structural level around $105–$100. On the upside, AAVE must reclaim $130 and break above the descending resistance line to invalidate the bearish scenario.

Structure Still Favors Sellers

From a structural perspective, AAVE remains inside a broader descending channel that began months ago. The recent triangle formation appears to have been a continuation pattern rather than a reversal setup.

Seeing both charts together, the pattern is visible: repeated rejection from resistance, breakdown from compression, and price hovering near support without strong bullish expansion.

If support near $120 gives way, the path toward the highlighted target zone becomes technically open. A sustained reclaim above $130 would be required to shift momentum back in favor of buyers.

For now, the market structure remains cautious, with downside risk elevated while price trades beneath diagonal resistance.

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