Aave (AAVE) is showing signs of a potential recovery with the token price trading at $106.85 and technical indicators suggesting a sell-off may be on the horizon. Despite the recent bearish momentum, our AAVE price forecast indicates a possible rally towards key resistance levels in the near future.

AAVE Price Forecast Summary

• Low-term goal (1 week): $115-118
• Medium-term forecast (1 month): Range $120-135
• Bullish breakout level: $128.58 (SMA 20)
• Critical Support: $102.35

What cryptocurrency analysts say about Aave

The latest analyst forecasts from January showed optimism about AAVE’s potential. Caroline Bishop predicted that “AAVE’s price forecast shows a potential upside to the $190-$195 range by February 2026, driven by an oversold RSI rebound and analyst targets of $213. The current $165 level provides an entry opportunity.”

However, with AAVE currently trading at a much lower price of $106.85, these earlier predictions seem overly hopeful given current market conditions. Joerg Hiller’s analysis suggesting that AAVE “could rise 18-25% from current levels” remains more realistic and would assume a range of $125-135 compared to today’s prices.

According to on-chain data and technical indicators, AAVE’s current position suggests that the token may be approaching oversold conditions that could trigger an escalate in support.

AAVE technical analysis breakdown

The AAVE technical landscape paints a mixed but potentially improving picture:

RSI analysis: At 30.21, AAVE’s RSI is neutral but approaching oversold levels below 30, suggesting selling pressure may be exhausting.

Moving Average Structure: AAVE is trading well below all major moving averages, with the 7-day SMA at $111.01 providing immediate resistance. The 20-day SMA at $128.58 represents a significant headwind, while the 200-day SMA at $222.36 shows the extent of the long-term downtrend.

MACD Signals: The MACD histogram at -0.0000 indicates that bearish momentum is leveling off, potentially signaling a change in momentum. The MACD and signal lines converging at -13.8005 suggest that we may be approaching a potential bullish crossover.

Bollinger Bands: With the %B AAVE positioned at 0.2135, the token is trading closer to the lower band ($90.65) than the upper band ($166.51), indicating oversold conditions in the recent range.

Aave Price Targets: A Bull vs. Bear Case

Bullish scenario

An uptick in recovery could target immediate resistance at $109.90 followed by sturdy resistance at $112.95. A break above these levels would open the door to the 7-day SMA at $111.01 and potentially the 12-day EMA at $117.06.

The ultimate bullish target remains the 20-day SMA of $128.58, which would represent a 20% upside from current levels. This Aave forecast is in line with the historic oversold rebound in the DeFi sector.

A bearish scenario

Failure to maintain immediate support at $104.60 could lead to a test of sturdy support at $102.35. A break below this level could trigger further selling towards the lower end of the Bollinger Band at $90.65.

The daily ATR of $11.48 suggests significant volatility remains with the potential for quick moves in either direction.

Is it worth buying AAVE? Entry strategy

Current levels around $106.85 offer a reasonable risk-reward setup for traders who are comfortable with volatility. To consider:

• Immediately: $105-$107 range on any dips
• Conservative: Wait for the RSI to fall below 30 to confirm oversold conditions

Stop Loss: Place protective stops below $100 to limit your risk of loss

Risk management: Given the high volatility of AAVE (ATR of $11.48), position sizing should account for potentially more than 10% of daily movements.

Application

Our AAVE price forecast suggests a potential rebound to the $115-120 range over the next 1-2 weeks, based on oversold RSI conditions and converging MACD signals. However, the broader technical picture remains challenging as AAVE trades below all major moving averages.

Aave’s mid-term forecast of $120-135 is dependent on a broader DeFi market recovery and a successful defense of the $102.35 support level. Traders should remain cautious given the token’s 52% decline from recent highs.

Disclaimer: Cryptocurrency price predictions are speculative and should not constitute financial advice. AAVE and all cryptocurrencies carry significant risk of loss. Always do your own research and never invest more than you can afford to lose.

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