Aave steadies near $150 as buyers test recovery after sharp selloff

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Aave price analysis

Highlights

AAVE attempts to base above $146 after last week’s breakdown.
RSI near 54 shows recovery from oversold levels but weak follow through.
On-chain flows turn marginally positive, signaling pause in distribution.

The day’s range between $146.60 and $151.07 highlights a narrow recovery attempt, with price holding above recent lows but still capped below key resistance.

Aave price dynamics (Source: TradingView)

Technical structure analysis

AAVE remains below its short-term EMA cluster on the 1-hour chart. The 20 EMA is near $149.39, the 50 EMA around $151.07, and the 100 EMA close to $156.67, with price trading just under this resistance band. The 200 EMA sits higher near $165.66, reinforcing the broader bearish structure and limiting upside attempts.RSI is reading near 54.4, recovering from oversold conditions earlier in the week, but momentum remains fragile without a decisive reclaim of the $152 to $156 zone. Sustained acceptance above this band would improve short-term structure and signal stabilization. Failure to hold $146 would weaken the base and risk reopening downside toward the $140 area.

On-chain flows are mixed but stabilizing. Latest spot data shows a small net inflow of roughly $58,000, indicating that aggressive distribution has paused for now. While the inflow size is limited, it contrasts with the persistent outflows seen during the recent breakdown. Market cap has edged higher alongside price, but remains well below recent highs, confirming that fresh capital commitment is still cautious.

Sentiment and fundamentals

Sentiment around AAVE remains cautious amid ongoing governance uncertainty and broader risk-off conditions across DeFi. While regulatory clarity has improved following the closure of the SEC probe, near-term price action continues to be driven by technical damage repair rather than new growth catalysts. Liquidity remains selective, keeping upside attempts measured.

Short-term outlook

AAVE is attempting to base after defending the $146 to $148 zone, but the trend remains weak below its EMA resistance cluster. Holding above $146 is critical to avoid further downside, while a clean move above $156 is required to signal stabilization. Until that level is reclaimed, AAVE is likely to remain range bound, with recovery attempts facing overhead supply.

In earlier analysis, AAVE had broken below the $160 structure with heavy selling pressure and persistent outflows accelerating losses. The current stabilization near $150 reflects easing downside momentum, but failure to reclaim $156 keeps the structure corrective rather than bullish.

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