Summary AAVE consolidates near $285, capped by strong resistance at $293. October 3 netflows showed –$0.37M outflows, pointing to mild sell pressure. Fundamentals supported by V4 upgrade, macro tailwinds, and RWA adoption. By Ashutosh Sureka Aave (AAVE-USD) is currently trading at $285.55, slipping slightly after facing resistance near the $293 zone. The price is trading close to its key exponential moving averages, with the 20-day EMA at $285.93, 50-day EMA at $293.12, 100-day EMA at $287.46, and the 200-day EMA at $268.05. Immediate resistance stands around $293–$300, while near-term support sits at $280–$268. The RSI is at 48.20, indicating neutral momentum with neither strong bullish nor bearish bias currently. Technical picture Aave price dynamics (Source: TradingView) On-chain data reflects subdued market flows. Netflows on October 3 showed –$0.37M outflows, suggesting traders are moving tokens to exchanges, typically indicating mild sell pressure. Aave’s market cap stands at approximately $4.18B, with recent inflows failing to build strong bullish conviction. The pattern shows alternating inflows and outflows through late September and early October, reflecting indecision among larger holders. Technically, AAVE is consolidating just below its EMA cluster, with the $293–$300 zone acting as a pivotal resistance. A sustained breakout above this level is required to confirm a bullish reversal. On the downside, support between $280–$268 remains the immediate line of defense, with the 200-day EMA at $268 serving as a deeper cushion if selling intensifies. Fundamental positioning and outlook From a broader perspective, the upcoming V4 upgrade, expected later this year, remains AAVE’s key bullish catalyst. The modular architecture and liquidity unification are designed to attract institutional capital and improve capital efficiency. Additionally, macroeconomic shifts such as potential interest rate cuts could make Aave’s DeFi yields more appealing relative to traditional instruments, driving on-chain activity. Further, real-world asset integration through Horizon and GHO cross-chain stablecoin expansion provides long-term tailwinds. However, short-term sentiment remains tethered to price action and netflow trends, which currently show caution among whales and larger holders. Short-term outlook Looking ahead, reclaiming and sustaining above $293–$300 is crucial for bullish momentum. Failure to break this zone could result in consolidation between $268–$293, with a deeper correction possible if macro sentiment weakens or on-chain outflows accelerate. A break below $268 would expose AAVE to lower supports near $250, while a breakout could open targets toward $315–$320. In earlier analysis, the $293 resistance zone was flagged as a critical inflection point. Current price action continues to validate this view, with bulls yet to establish control above this level. 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
