Technical analysis by The_Alchemist_Trader_ about Symbol AAVE: Buy recommendation (8/30/2025)

Aave (AAVE) failed to break above the $390 resistance level and has since turned lower. The market is now watching closely as price approaches the $227 support area, a zone that could determine whether the broader bullish structure holds or breaks down. Price Rejection at Resistance AAVE attempted to extend higher but was firmly rejected at $390, a level that has capped momentum before. The rejection sparked a corrective move, shifting sentiment short term and forcing the asset back toward mid-range support. This rejection confirms $390 as a major ceiling in the current structure. $227 as the Critical Line in the Sand The decline has brought price action toward the $227 region, which carries strong technical significance. This level aligns with the 0.618 Fibonacci retracement of the recent move, as well as the prior structural higher low. The confluence here makes $227 the most important level for bulls to defend if they want to maintain the upward narrative. Volume and Market Structure One notable observation is that bullish volume has faded during this pullback. Previous rallies in AAVE were supported by consistent spikes in demand, fueling continuation. For a reversal from $227 to gain traction, the market needs to see a clear return of strong buy-side activity. Without this, any bounce risks being short-lived. Scenarios to Watch Bullish Case: If $227 holds with renewed volume, AAVE could rotate higher and retest the $390 resistance. A successful breakout from there would mark a significant continuation of the uptrend. Bearish Case: If $227 breaks with conviction, the bullish structure of higher lows would collapse, opening the door to a deeper retracement toward lower support zones. Outlook Aave sits at a decisive juncture. The rejection at $390 has confirmed overhead resistance, but the upcoming reaction at $227 will dictate the next chapter. Hold the level, and a path back toward $390 remains alive. Lose it, and momentum shifts firmly in favor of sellers.