Aave (AAVE) Breaks $230 Resistance Amid Strong Bullish Momentum

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Georgi Shopov
20 May, 2025, 22:00
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Aave (AAVE) Breaks $230 Resistance Amid Strong Bullish Momentum: OBV and Liquidation Heatmap Signal Potential Rally Toward $262 and $284

Aave (AAVE) is currently on an uptrend, having just broken past the local resistance level of $230. The overall bullish momentum in the cryptocurrency market suggests that AAVE is poised for further gains on the charts.

Aave 1-Day Chart

The 1-day chart shows a clearly bullish market structure for AAVE. This bullish flip occurred after the price moved beyond the March lower high, which was positioned at $185 and marked in white on the chart. This breakout took place earlier this month and was supported by high trading volume.

Key observations include:

Rising On-Balance Volume (OBV): The OBV climbed alongside price increases, challenging the March highs. This indicates that the rally from the $160 support zone is driven by strong demand and has the potential to continue.
Fibonacci Retracement Levels: Based on the November rally, the 2025 retracement erased gains made in late 2024. Crucial resistance levels to watch on the way up include $230 and $262.

At the time of writing, the $230 level has flipped to support after nearly nine days of attempts by AAVE bulls to decisively break above it.

Potential for Range Formation?

Aave Liquidation Heatmap

Aave (AAVE) Breaks Out of Range, Eyes $320 Resistance Amid Bullish Momentum

The 3-month liquidation heatmap reveals that AAVE is approaching a liquidity pocket near $246. This proximity suggests a likely upward movement in the near term. Whether AAVE can break above the $250–$252 range will depend on the strength of buying pressure.

The 2-week liquidation heatmap further highlights the possibility of a range-bound pattern:

The $245–$248 zone acts as a magnetic level drawing price higher.
This area also represents the local high over the past four days.

While a rejection around the $250 mark and a retracement toward $210 could occur, this seems less probable given the current bullish market sentiment. Additionally, Bitcoin’s (BTC) ongoing rally may help push AAVE beyond the $250 resistance.

Key Levels to Watch

Support: $230 (recently flipped)
Resistance: $250, $262, and $284

Traders should monitor the OBV closely. Sustained buying pressure will confirm continued strength, while any weakening could serve as an early warning sign.