Aave Bulls Charge Toward $227: Make-or-Break Moment as Key Support Holds

Aave's price action is flirting with a decisive breakout—or breakdown. The $227 zone isn't just another resistance level; it's a confluence of Fibonacci retracements, historical liquidity pools, and the last line of defense for bears clinging to their short positions.

Why this price matters

Technical analysts are glued to the 4-hour chart, where Aave has formed a textbook bullish flag. Volume patterns suggest accumulation, but let's be real—this could also be another 'fakeout' setup before the next 20% rug pull. After all, what's crypto without a little emotional damage?

Market sentiment check

Funding rates remain neutral—no excessive leverage (for once). Retail traders seem cautiously optimistic, while whales appear to be testing sell walls like burglars jiggling door handles. The real tell? How quickly those limit orders vanish when price approaches $227.

Make your move

Either we get a clean breakout with follow-through—or another soul-crushing rejection. Place your bets accordingly, and maybe hedge with some actual assets. You know, like gold... or canned beans.

Key technical points:

• HTF Resistance Rejected at $316: A strong rejection has shifted momentum short-term.
• Major Support at $227: Confluence of 0.618 Fibonacci, higher low zone, and bullish order block.
• Bullish Market Structure Intact: As long as $227 holds, structure favors a rotation back toward $390.

The rejection from $316 marks a clear local top for now, especially as price rotates back into more meaningful support levels. The point of control has acted as a buffer, but recent price action suggests weakness at this level. If this area fails on a daily closing basis, the probability increases for a deeper retracement toward $227.

The $227 region carries significant technical importance. It is not only a historical higher low, but also aligns with the 0.618 Fibonacci retracement level and a bullish order block based on previous candle structures. This combination of support levels forms a high-confluence zone where price could FORM a bottoming pattern and resume upward movement.

From a structural standpoint, the current pullback is still considered healthy within the context of an overall bullish market. A rotation into high-timeframe support does not invalidate the uptrend, as long as the region holds and price eventually forms a higher low. This WOULD support the narrative of continued strength and offer a potential setup for a new leg higher.

Should support at $227 hold and a bounce materialize, the upside target remains the high-timeframe resistance at $390. This would represent a full bullish rotation from support back into the next major zone of supply and would keep the trend of higher highs and higher lows intact.

What to Expect in the Coming Price Action

Aave’s price is likely heading toward the $227 support zone after losing the POC. If that level holds, a bullish reversal is likely, targeting $316 and potentially $390. However, failure to hold $227 would compromise the structure and open the door to deeper downside.