Aave rockets 30% in 96 hours—but can bulls smash the $300 ceiling?

DeFi''s lending heavyweight Aave just pulled off a blistering rally—adding a third to its value in under four days. Now traders are eyeing the $300 level like Wall Street eyes a bailout.

The make-or-break moment

Breaking past $300 requires more than just hype. Liquidity depth, protocol upgrades, and—let’s be real—some speculative froth would help. The last time Aave flirted with these heights, it got dumped faster than a bad IPO.

The cynical take

Of course, this could just be another ‘buy the rumor’ pump before the usual suspects take profits. After all, what’s crypto without a little rug-pull potential?

How Aave can rally past $300

Source: AAVE/USDT on TradingView

Based on the rally from $125 to $399 in November-December 2024, a set of Fibonacci retracement levels was plotted. After retracing all the gains made back then, by April, Aave began to trend higher.

It forced a bullish market structure break on the 1-day timeframe on the 8th of May, and has continued to trend higher since.

The range formation gave the token time to reset its momentum and build liquidity around the extremes of the range.

A swift breakout came on Monday after a retest of the $240 support. Bitcoin [BTC] rallied from $105.5k to $110.5k on Monday, which helped AAVE bulls’ cause.

The OBV showed steady demand, and the RSI showed bullish momentum without a bearish divergence.

Source: Coinglass

The 1-month heatmap highlighted the buildup of liquidation levels around the extremes of the range, at $240 and just above $280.

Over the past couple of days, AAVE raced toward the $280 magnetic zone and was able to surpass it easily.

Source: Coinglass

Zooming in on the 3-day heatmap, we can see that the MOVE higher stalled for a few hours at the $290 mark. This gave time for short liquidations to expand in the $295-$300 region, and was taken out too.

At press time, the $320 and $305 were the short-term magnetic zones. Aave traders can watch out for a range formation.

A price drop toward the $285 zone, just above the former range high, WOULD offer an attractive buying opportunity.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion