AAVE Price Forecast: Rebound to $185-$195 Expected by January 2026 Despite Current Weakness

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Rongchai Wang
December 31, 2025 10:11 am

AAVE price forecasts call for a rebound of $185-$195 within 4 weeks as the oversold RSI and descending wedge formation suggest a bullish reversal from the current $149.76 level.


Aave (AAVE) stock is trading at a critical juncture near its 52-week low of $148.76, presenting both a significant risk and opportunity for investors. Our comprehensive analysis of AAVE price forecasts suggests a potential recovery is on the way, despite current bear momentum indicators.

AAVE Price Forecast Summary

AAVE short-term goal (1 week): $165-170 (+10-13%) • Aave medium term forecast (1 month): Range $185-195 (+23-30%) • Key level to break for bullish continuation: $167.50 (SMA 20) • Critical bear case support: $146.40 (instant support)

The latest Aave price predictions from analysts

The latest analyst forecasts show a cautiously bullish consensus on AAVE’s recovery potential. AInvest’s AAVE price forecast calls for a near-term target of $195-$205, citing a descending wedge formation and oversold RSI conditions as upside catalysts. This is in line with our technical assessment showing that AAVE is trading near critical support levels.

CoinCodex offers a more conservative Aave forecast with a target of $179.14, confirming the recent monthly decline of 3.05% while also factoring in technical signs of recovery. The convergence of these forecasts around the $180-$200 range suggests that institutional analysts see value at current levels, despite the challenging technical context.

Market consensus indicates that while AAVE faces near-term headwinds, the risk-reward profile favors patient buyers willing to accumulate near support levels.

AAVE Technical Analysis: Preparing for an Oversold Bounce

Aave’s current technical analysis reveals several compelling signals of a potential trend reversal. The RSI of 35.77 indicates that AAVE is approaching oversold territory without reaching extreme levels, suggesting room for further declines but also positioning for an raise in relief.

The MACD histogram at -1.2450 confirms the bear momentum, but the relatively shallow reading compared to previous huge corrections suggests that selling pressure may be waning. AAVE’s position of 0.25 within the Bollinger Bands indicates that the token is in the lower quartile of its recent range, historically a zone where reversals often occur.

Volume analysis shows that the recent decline occurred on moderate volume rather than panic, which supports a technical rebound rather than a fundamental breakdown. The daily ATR of $10.44 suggests a normal level of volatility, indicating that AAVE is not experiencing unusual stress.

Aave Price Targets: Bull and Bear Scenarios

Bullish case for AAVE

AAVE’s primary price objective for bulls centers on a rebound of the 20 SMA at $167.50, which would signal the first sign of trend stabilization. A break above this level opens a path to $185-195, which aligns with the predictions of a breakout of the descending wedge formation identified by recent analysts.

The bullish scenario calls for AAVE to hold support above $146.40 while building volume on any upside moves. Success in breaking $167.50 could trigger a push towards immediate resistance at $206.82, which would represent a 38% upside from the current level.

The key technical requirements for the bull market include a rebound of the RSI above 45, the MACD histogram turning positive and a sustained trade above the lower Bollinger Band at $132.42.

Bearish risk for Aave

The bearish scenario for AAVE centers on a break below the critical support level at $146.40, which could trigger a retest of the 52-week low at $148.76. A decisive break below this level would result in a lower Bollinger Band of $132.42, representing an 11% decline from current prices.

Risk factors include broader cryptocurrency market weakness, continued needy performance of the DeFi sector, and the failure to generate significant volume on any recovery attempts. The distance from the 200-day SMA at $251.59 shows that AAVE remains in a significant downtrend, requiring significant fundamental catalysts for a sustained recovery.

Should you buy AAVE now? Entry strategy

Our Aave technical analysis shows that the current level near $149.76 represents a calculated buying opportunity for risk-tolerant investors. The optimal entry strategy involves scaling into a position in the $146.40-$151.85 range, using SMA 7 as a timing guide.

Conservative buyers should wait until the RSI rebounds above 40 and the MACD histogram shows improvement before initiating positions. Aggressive investors may consider starting to accumulate now with tight stop-losses below $145.

Risk management is crucial given bear market dynamics. Position size should be constrained to 2-3% of the portfolio allocation, with stop-losses set at $144 to limit downside risk to approximately 4%. Take-profit levels should be at $165, $180 and $195 to capture the full recovery potential while managing risk.

AAVE price forecast conclusions

Our AAVE price forecast is for a rebound to $185-195 over the next 4-6 weeks, representing a 23-30% raise from current levels. This forecast includes, among others: medium confidence levelsupported by oversold technical conditions and analyst consensus on similar price targets.

The key indicators to watch are the RSI rebound above 40, improvement in the MACD histogram, and most importantly, AAVE’s ability to hold support above $146.40. Failure to maintain this level would invalidate the bullish thesis and potentially cause further declines towards $132.

Traders should monitor broader DeFi sector sentiment and Bitcoin performance, as both significantly influence AAVE’s price action. The forecast timeline is January 2026, with the first signs of recovery expected within 7-10 days if technical conditions persist.

Image source: Shutterstock


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