In early January 2026, Aave (AAVE) was trading near $165, holding above short-term support with upside levels at $185 and $200 in focus. At the time, the pullback was viewed as controlled consolidation within a broader constructive structure. Since then, market conditions have shifted.

While the broader cryptocurrency market has remained relatively flat in recent sessions, AAVE has begun to attract renewed buying interest, posting weekly gains of nearly 20%. The token is now trading around $127, rebounding from its recent lows and holding slightly above the $120 support zone.

AAVE technical analysis

AAVEUSD - 1 Day Time Frame

The $120 level now acts as immediate structural support. This zone formed after the sharp February decline and has so far stabilized price action. As long as AAVE remains above this level, the short-term recovery structure remains intact.

To the upside, attention turns to the $150 S/R zone. Notably, this area previously acted as support during the January structure discussed earlier, when price consolidated above $150 before pushing toward $165. However, following the breakdown in early February, that former support has now transitioned into resistance — a classic support-to-resistance flip.

A sustained move above $150 would mark an important structural shift and could open the path toward the next major S/R area near $165–$166. This level also previously functioned as support during the January phase but now represents a broader resistance barrier after the market-wide correction.

Beyond that, the psychological $200 level remains a longer-term objective, though reaching it would likely require stronger improvement in overall crypto sentiment and sustained capital inflows.

AAVE price target

If buying pressure continues and AAVE manages to reclaim $150, momentum could gradually build toward $166. Acceptance above that zone would signal a more meaningful structural recovery.

However, failure to maintain strength above $120 could lead to renewed consolidation between $120 and $150. A breakdown below $120 would weaken the current recovery attempt and expose lower support near $100, which represents the next significant downside level.

For now, the $120–$150 range defines the short-term battlefield. A decisive break on either side will likely determine whether AAVE’s recent rebound evolves into a broader recovery phase or remains a corrective bounce within a larger downtrend.