Aave (AAVE) is showing signs of a healthy correction, pulling back from recent highs and drifting toward a critical support zone. But all eyes are now on a key level: $227. If this area holds, Aave could be setting the stage for its next major move higher possibly even a retest of $390.
Aave Pulls Back, But Structure Remains Bullish
After hitting resistance near the top of its trading range, AAVE has cooled off and is now hovering near the point of control a price area where previous trading volume was heavily concentrated. While that sounds like a red flag, the pullback is actually part of a bullish channel that’s been forming for several weeks.
This channel is defined by a clear series of higher highs and higher lows, and Aave is now approaching what could be the fourth touch of the channel’s lower boundary a point that often sets the stage for a reversal.
Why $227 Matters
The $227 level isn’t just part of the channel it also lines up with high time frame (HTF) support, adding extra strength to this area. If AAVE can find support here and build a bottoming pattern, it could quickly rotate back toward the top of the channel, with $390 as a key target.
Even if price dips slightly below the point of control, as long as it holds above $227, the bullish structure remains intact. That would just be a deeper retest a chance to set a new higher low before continuing the uptrend.
What to Watch Next
- Support at $227: This is the line in the sand. If it holds, expect bulls to regain control.
- Volume confirmation: A bounce backed by strong volume would strengthen the bullish case.
- Target to the upside: If the structure holds, AAVE could head back toward the value area high and possibly test $390.
Final Take
Aave may be in a correction phase, but it’s not bearish it’s constructive. As long as support holds and price action respects the lower boundary of the channel, this could be the launchpad for AAVE’s next leg up.
But if the $227 zone breaks down, bulls may need to rethink the short-term outlook, as it could signal a deeper correction ahead.
Want a Twitter thread or chart overlay to go with this? Let me know!
