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Aave [$AAVE] has decisively cleared the $130-supply zone that has been in place since February 2026. The rally from Wednesday, 19th August, took the DeFi token’s price from $87.54 to a peak of $145.09. This hinted at remarkable 65.7% move in under five days.
Bitcoin [$BTC] and the wider crypto market’s momentum helped bolster Aave’s market sentiment. At the same time, news that Aave V4 deposits crossed $500 million on 19th August and crossed $800 million at press time also reflected market confidence.
Active loans crossed $216 million too. Together, these allude to sizeable capital migration to the new architecture and real borrowing demand, a positive sign for Aave and DeFi liquidity.
A minor price pullback on the charts
Bitcoin‘s price momentum has slowed down in recent days. The $80K-$82K resistance zone has been tough to crack. At the same time, $AAVE’s price slipped from its $145 local high to $124 at press time.
The swing structure was bullish following the move above $118.87 (green). Additionally, the $120-$130 area has been a supply zone since February. It appears to have been flipped to support.
The OBV was trending higher since July to showcase steady buying pressure, and the RSI’s reading of 66 reflected momentum that was still bullish.
The $120-support zone is expected to hold if the buying pressure is sustained. If not, there is a chance of a pullback. The Fibonacci retracement levels (yellow) showed that a drop to $76-$91 was a possibility in case sellers seize control in the short-term.
Traders’ call to action – Watch the $120 zone!
Over the past few days, the RSI on the 4-hour timeframe has reset towards neutral 50. The OBV has also seen a dip as $AAVE’s price retraced from the $145-resistance to $124.
As highlighted previously, the $120-former supply zone is now a critical short-term demand zone. Steady buying pressure can be expected to return and keep $AAVE’s uptrend going. Especially if Bitcoin can climb above $82K.
In the short-term, traders can maintain a bullish expectation and use the dip to $120 to buy. A drop below $112 would signal short-term bearishness, the first warning sign of a deeper pullback to $76-$91.
Final Summary
- $AAVE’s bullish momentum has been fueled by $BTC’s gains, as well as a steep hike in V4 deposits.
- Retest of the $120-former supply zone represents a buying opportunity..
Source: cryptonews.net
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