Summary AAVE trades near $310, capped below the $318 resistance cluster. $2.28M exchange inflows on September 5 indicate profit-taking pressure. Fundamentals supported by Aptos deployment, Horizon initiative, and V4 roadmap. By Jainam Mehta Aave ( AAVE-USD ) is currently trading at $310.25, recovering modestly after yesterday’s sell-off but still hovering below the $314–$318 resistance cluster. The token is consolidating just above the $309.5 20-day EMA and testing the 50-day EMA at $312.7, while the 200-day EMA at $315.7 forms the upper boundary of near-term resistance. If AAVE manages a decisive close above $318, it could retest the $325–$330 zone, while failure to hold the $309–$310 base risks another slide toward the $300 psychological support. The RSI at 48.4 signals neutral momentum, with MACD still in negative territory, suggesting fading buyer conviction. Technical and on-chain picture On-chain flows highlight cautious behavior. CoinGlass data shows $2.28M in exchange inflows on September 5, signaling short-term distribution and profit-taking pressure. This contrasts with earlier outflow-led accumulation, suggesting whales remain divided - some reducing exposure while others continue rotating into cold storage. Market cap has stabilized around $4.5B, reflecting resilience compared to smaller DeFi peers despite recent volatility. Aave price dynamics (Source: TradingView) Technically, price action is in a make-or-break setup. A sustained close above the $318–$322 zone would signal the beginning of a fresh upward leg, targeting the $330–$332 supply band. Failure here would lock AAVE inside a $300–$318 consolidation range, where downside breaks risk retesting $290 support. RSI remains neutral, but MACD’s negative slope shows buying conviction is weak, leaving AAVE vulnerable to another correction if buyers cannot reclaim control quickly. Fundamental positioning and outlook From a fundamentals standpoint, AAVE continues to reinforce its blue-chip DeFi status. The Ethereum ( ETH-USD ) beta trade rotation has helped altcoin inflows tied to ETH’s relative strength, while the Aptos deployment of Aave V3 marked its first non-EVM chain expansion, broadening adoption beyond Ethereum-native ecosystems. The Horizon initiative is also noteworthy, designed to onboard tokenized real-world assets and strengthen Aave’s role as a bridge between TradFi and DeFi. Institutional engagement remains supportive, highlighted by integrations such as Kraken’s white-label lending partnership and liquidity engine adoption. However, risks persist in the near term. Phishing-related concerns have created temporary unease within the retail community, while regulatory scrutiny of DeFi governance tokens continues to weigh on sentiment. Together, these headwinds temper Aave’s otherwise positive growth trajectory. Short-term outlook Looking forward, AAVE’s short-term structure will hinge on whether bulls can clear $318 with conviction. A close above that level opens upside targets at $325–$330, and potentially $340, should flows return. Conversely, losing the $309–$310 pivot could extend the correction toward $300, where the psychological support will be tested. Below this, $290 is the next critical level to watch. Traders should also monitor Ethereum closely, as AAVE’s 0.82 correlation with ETH means ETH’s direction will likely dictate AAVE’s momentum in the coming sessions. In earlier analysis, the $318 resistance zone was identified as the level AAVE must break to flip momentum bullish. Current price action continues to respect that resistance, confirming its importance as the defining level for short-term direction. This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
