Summary AAVE trades below $300 with EMA cluster overhead at $303–$308. $0.98M inflows on September 16 signal renewed exchange deposits. Fundamentals supported by Aptos expansion and Kraken Ink partnership. By Jainam Mehta Aave ( AAVE-USD ) is currently trading at $296.30, showing weakness after failing to defend the $300 psychological level and slipping below its short-term moving averages. The 20-day EMA sits at $303.0, the 50-day EMA at $305.9, the 100-day EMA at $307.5, and the 200-day EMA at $308.2, all clustering overhead as resistance. The immediate support is at $295.0–$292.0, with a deeper floor around $276.0 if bearish momentum persists. To shift sentiment, AAVE must reclaim the $300–$305 zone, which now acts as resistance. The RSI at 35.4 indicates oversold conditions, hinting at short-term exhaustion in selling pressure. Technical and on-chain picture On-chain flows reflect mixed signals. Netflows on September 16 recorded +$0.98M inflows, suggesting renewed deposits into exchanges. While this may point to profit-taking or near-term sell pressure, whale accumulation near the $290–$295 region has historically provided local support. AAVE’s market cap remains near $4.2B, securing its status as a top DeFi lending protocol, though it lags behind competitors in recent momentum. Aave price dynamics (Source: TradingView) Technically, the loss of the rising channel structure and rejection from the EMA cluster confirm bearish momentum. Holding $295 support is now critical, as a break lower could expose the $276 zone, last defended in July. Conversely, reclaiming $300–$305 would restore confidence, with follow-through targets at $325–$330 if momentum builds. Fundamental positioning and outlook From a fundamentals standpoint, Aave continues to expand its ecosystem. The Aptos integration earlier this year marked its first non-EVM deployment, broadening the reach beyond Ethereum and its L2s. At the same time, the partnership with Kraken Ink is designed to channel institutional liquidity into regulated Aave-powered lending markets, positioning the protocol for long-term adoption. On the downside, regulatory risks tied to stablecoin yields and phishing campaigns targeting Aave users highlight short-term sentiment headwinds. Institutional engagement remains supportive, but retail appetite has weakened as staking yields declined. The V4 Liquidity Hub and Horizon RWA markets provide longer-term tailwinds by bridging DeFi and traditional finance, yet near-term market structure suggests Aave will remain dependent on Bitcoin-led flows. Short-term outlook Looking ahead, AAVE sits at a fragile juncture. If $295 holds, oversold RSI could spark a relief rally back into $305–$310, aligning with EMA resistances. A decisive break above $310–$315 would be needed to unlock medium-term targets at $325–$330. Conversely, failure to defend $295 risks further downside into the $276–$278 demand area. Broader altcoin weakness, fueled by rising Bitcoin dominance at 57.3%, will remain a key external driver. In earlier analysis, the $300–$305 zone was highlighted as the critical pivot. Current price action confirms its role as the key battleground for AAVE’s next directional move. This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
