- Aave bulls have made modest gains over the past two weeks.
- Traders would have a buying opportunity in case of an AAVE dip to the $150 level.
Aave [AAVE] witnessed a slow but steady growth in Total Value Locked (TVL) over the past few days. This implied increased investor confidence and more capital deposited in Aave’s smart contracts.
The Aave team has set aside $50 million annually to buy back AAVE from the market, which could also help shore up investor confidence.
On the back of this news, as well as the market-wide rally of the past week, the altcoin managed to climb above the $150 short-term resistance zone.
Aave bulls are not out of the woods yet
Source: AAVE/USDT on TradingView
Since registering the lows at $125 on the 9th of April, AAVE bulls have driven a 26.2% rally in two weeks. By comparison, Bitcoin [BTC] was up 22% in the same period.
It is also well known that the altcoin market generally follows the trends of BTC.
The token individually did not exhibit remarkable strength. The OBV had not made new local highs, which meant that buying pressure was subdued.
Hence, investors and traders hoping for a sustained rally will have to hope that buying volume increases shortly.
The RSI climbed above neutral 50 to indicate a bullish momentum shift on the chosen timeframe. Without signs of accumulation, this momentum shift means little, as it could just be a by-product of the BTC move.
The $190 level marked the most recent lower high of the downtrend in 2025, making it this rally’s target.
Source: Coinglass
The 1-month liquidation heatmap showed that the $182 and $191 levels were the strongest magnetic zones above the market price. The liquidation levels here made for an attractive target for AAVE.
Closer to the price, the $173 and $149 levels were also interesting regions.
Source: Coinglass
Zooming in on the 1-week heatmap, the $166, $159, and the $149 levels emerge as short-term price targets that could see a price reversal.
Putting the liquidation heatmap clues together, over the coming days, Aave is likely to climb higher toward $190. This level coincided with the 1-day chart’s lower high.
On the way there, the $170 region could stall the bulls. It might even force a retracement as deep as $159 or $149. Such a price dip would likely present a buying opportunity.
Traders have the evidence to be bullish in the short term, but a breakout beyond $190 would require sustained demand, which AAVE did not possess at press time.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion