Aave (AAVE) has remained under pressure in recent sessions, extending its decline after breaking below a key support zone. The token has fallen for seven consecutive sessions, losing more than 15% of its value, which reflects sustained selling activity and weakening short-term sentiment.

While the recent breakdown reinforces the prevailing downtrend, the broader outlook will depend on how price behaves around lower liquidity zones and whether any signs of stabilization begin to emerge. This raises the question of whether AAVE is entering a deeper bearish phase or approaching an area where a corrective move could develop.

AAVE technical analysis

AAVEUSD - 1 Day Time Frame

AAVE has recently moved below a previously established support zone, which now acts as a resistance level, confirming a continuation of the bearish market structure. This shift suggests that price has accepted lower levels, with supply continuing to outweigh demand in the near term.

From a structural perspective, the current price action reflects continued downside pressure, with no clear indication yet of a shift in momentum. In such conditions, markets often seek lower Sell-Side Liquidity zones, where resting orders are positioned below recent lows.

The nearest area of interest appears around $95, which may act as a potential downside reference point. Price behavior around this zone could provide further insight into whether selling pressure remains dominant or begins to stabilize.

AAVE price target

If the current bearish momentum persists and price continues to trade below the reclaimed resistance zone, the probability of a move toward the $95 level could increase. This area represents a logical zone where market participants may reassess demand.

Conversely, if a shift in short-term momentum occurs and price begins to establish acceptance above nearby resistance levels, a corrective move could develop. In that scenario, attention may shift toward Buy-Side Liquidity zones near $130, $165, and $180, which represent potential technical reference points.

A move toward the $130–$136 region, including the area above the 0.5 Fibonacci retracement level, may be considered within the context of a broader corrective phase rather than a confirmed trend reversal, depending on overall market conditions.

From a broader perspective, AAVE remains within a bearish structure, with recent price action reinforcing downside pressure. However, price behavior around key liquidity zones will likely determine whether the market continues lower or begins to transition into a corrective phase.

Crypto assets are unregulated, decentralised and highly volatile assets which entail substantial risks and you may lose all invested capital. Refer to the Disclaimers for detailed information on potential risks.