Key takeaways:
- Crypto experts suggest that AAVE coin price may drop to $260 before likely reaching $500.
- The DeFi token experienced resistance at $400, indicating a near-term bearish trend.
- Despite short-term bearish indicators, the long-term trend remains intact above key moving averages.
The AAVE Finance token the price has decreased by 9.63% in the last 24 hours to $335.36. However, it has increased by 7.27% in the last week and 96.64% over the previous month. Crypto experts believe that there could be a price drop before it can rise to as much as $500.
Technical indicators show mixed signals but suggest that AAVE prices may rise in the near term. Still, some bearish signs support cryptoanalysts’ predictions of a potential fall ahead of a significant rally.
AAVE Price Prediction: $260 before $500?
The price target for the AAVE Finance cryptocurrency is between $450 and $500 in the short term. However, if the price does not remain strong, it could drop to between $260 and $220.
The tweet highlighted that the AAVE token hit resistance at $400 and failed to break through. This could indicate a bearish trend, so traders should be alert to possible price declines.
Key support levels to watch are $290, $265, $240 and $220. If AAVE’s price falls, these levels could become good buying opportunities, allowing traders to take advantage of lower prices.
There is also concern that Bitcoin’s price may drop. Then Bitcoin (BTC) often affects the overall crypto market, a decline could push AAVE to a new low, supporting a bearish outlook. This connection highlights the need for traders to monitor Bitcoin’s performance closely.
Key indicators to watch
Another cryptanalyst, @Crypto_Scientalso have a positive view of AAVE. They placed a “LIMIT LONG” order for AAVE coin price, targeting the 4-hour unfilled order block (OB) and 4-hour 100 Exponential Moving Average (EMA). The chart suggests a possible entry point around USDT 373.40, with a price target near USDT 449.70.
Scient believes AAVE is strong as we approach the “Trump ceremony”, which could affect the market since Donald Trump’s inauguration is set for Monday, January 20, 2025.
Additionally, Bitcoin analyst @Nebraskangooner also sees a “strong recovery” in AAVE, noting that it is forming a bullish J-hook pattern, signaling an uptrend. If this momentum continues, he suggests a potential target of $450. The chart shows that AAVE is recovering from a dip, and the J hook indicates a possible trend reversal.
Although bearish indicators suggest caution, the overall sentiment remains optimistic about the recovery.
TradingView charts and indicators for the AAVE/USDT trading pair paint a bearish picture in the short term. The sharp price drop of 9.82% to 332.99, the break below the middle Bollinger band at 334.59 and the breach of the oblique support line at 344.30 all indicate significant selling pressure.
However, while falling, the price remains above the 50-day MA at 249.48 and the 100-day MA at 200.47, suggesting that the long-term trend may still be intact.
