Aave holds in lower recent range as ADX highlights established downtrend: weekly forecast

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Aave slips 0.93% over the week

Highlights

AAVE remains under sustained selling pressure as it trades below all major moving averages, reinforcing a bearish market structure.
Momentum indicators confirm a strong downtrend with negative signals from MACD, ADX, and sellers consistently dominating short-term moves.
Expected price range for the next week is $69.00 to $103.00, with a much higher probability of downside than a sustained rally.

Weekly protocol expansion fuels adoption amid DAO support

Aave has launched its V3 lending protocol and introduced the GHO stablecoin on the Monad blockchain, expanding its multichain operations. This move is supported by a $15 million incentive package from the Monad Foundation and a commitment to hold 10 million GHO tokens for market stabilization. The expansion follows near-unanimous approval by the Aave DAO and leverages Monad’s Ethereum compatibility for increased user adoption. Additionally, Aave achieved a record single-day wallet growth on Ethereum and saw strong deposit activity in its V4 upgrade.

Bearish momentum dominates as moving averages and indicators weaken

On the weekly (W1) timeframe, AAVE’s price action remains decisively bearish, with the asset trading below the MA-20, MA-50, and MA-200. The MA-20 acts as immediate resistance, while higher moving averages confirm sustained selling pressure. Weekly momentum indicators reinforce the negative tone: the MACD gives a Strong Sell, the ADX confirms an established downtrend, and the RSI signals continued weakness. Despite the Stochastic RSI entering overbought territory and the CCI reading as neutral, Bull/Bear Power indicates sellers remain in control, and the Awesome Oscillator is neutral. Weekly volatility stands at 19.98%, and the price resides in the lower part of the current range, reflecting a steady decline from previous highs. Divergences between classic and stochastic oscillators suggest caution, but overall technicals remain bearish.

Sideways range likely this week as breakout risks remain limited

For the next 7 days, AAVE is expected to trade within a range of $69.00 to $103.00, in line with recent weekly volatility. The probability of a sustained upward breakout is very low, as none of the four key weekly indicators show a Buy or Strong Buy. The most likely scenario is for AAVE to continue trading sideways within this range, under continued selling pressure. A move below $69.00 would signal the risk of deeper declines, while any sustained rally above $103.00 remains unlikely given current momentum and resistance from moving averages.

Earlier, analysts noted that Aave's expansion onto new chains like Monad, supported by major incentive packages, is designed to strengthen its position within the broader DeFi ecosystem. The current bearish technical outlook for AAVE adds caution for traders, making a sustained break below $69.00 an important risk level to monitor for potential further downside in the near term.

Source of Data: AAVE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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