Aave breaks through the resistance level of $150 as buyers gain more confidence – What will happen next?

Aave (AAVE) has recorded a slow but steady increase in Total Value Locked (TVL) in recent days, reflecting increased confidence from investors and a rise in capital being funneled into smart contracts. To further bolster this confidence, the Aave team has committed to spending 50 million USD annually to acquire AAVE from the market.

Positive information, along with the overall recovery of the market in the past week, has helped Aave surpass the short-term resistance level at 150 USD.

Aave bulls are not completely out of danger yet

AAVE price chart | Source: TradingViewSince hitting a low of 125 USD on April 9, the price of AAVE has increased by 26.2% within two weeks. In comparison, Bitcoin (BTC) only increased by 22% during the same period. Altcoin markets typically tend to follow Bitcoin, and AAVE is no exception.

However, AAVE has not yet demonstrated significant strength individually. The OBV index has not reached new highs, indicating that buying pressure remains weak. Therefore, investors and traders expecting a sustainable increase will need to see buying volume rise in the coming period.

The RSI index has crossed the neutral threshold of 50, signaling a shift towards bullish momentum in the chosen timeframe. However, without signs of accumulation, this shift may just be a side effect of BTC's volatility.

The level of 190 USD marks the most recent lower high of the downward trend in 2025, becoming the target of this rally.

Source: CoinglassThe liquidation heat map for the past month indicates that the levels of 182 USD and 191 USD are the strongest areas on the market price, creating attractive targets for AAVE.

Closer to the current price, the levels of 173 USD and 149 USD are also noteworthy areas.

Source: CoinglassWhen zooming in on the heat map over a week, the levels of 166 USD, 159 USD, and 149 USD emerge as potential short-term price targets for a reversal.

Based on the insights from the liquidation heatmap, Aave has the potential to continue rising towards 190 USD in the coming days, coinciding with the lower high on the 1-day chart. However, the 170 USD level may pose a resistance, which could even lead to a deeper correction to 159 USD or 149 USD, creating a buying opportunity.

Although traders have reasons to be optimistic in the short term, surpassing the 190 USD threshold will require sustained demand, something that AAVE currently lacks.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

Mr. Teacher