AAVE trades near $124 after an 86% drop, holding $90 support as analysts eye $190–$1,000 targets if structure remains intact.
AAVE is trading near $124 after declining about 86% from its all-time high. The token has entered a key technical area that many traders describe as a higher time frame support zone.
Market participants are closely watching price structure as compression builds between major trendlines.
Multi-Year Trendline and Accumulation Zone in Focus
AAVE continues to hold above a long-term ascending trendline that has been intact since 2021.
This trendline intersects with a weekly support region near $90, which analysts classify as a higher time frame accumulation zone.
The recent bounce from this area has drawn attention from technical traders.
Price action shows a liquidity sweep below previous swing lows before recovering back above support.
Traders often interpret this pattern as a sign that weaker hands have exited positions. The reaction from the trendline suggests that buyers are still defending the broader structure.
At the same time, AAVE is compressing between descending resistance and ascending support. This tightening range typically reduces volatility before a larger directional move.
Market participants are monitoring for a confirmed breakout or breakdown.
Critical Levels Define Market Structure
Analysts have identified the $110 to $90 region as a bullish order block and demand zone.
This area previously served as consolidation before prior upward expansion. Holding above this band is viewed as important for maintaining a constructive setup.
Another key level sits at $74, which traders describe as the invalidation point for the bullish thesis.
A weekly close below $74 would weaken the current higher low structure. As long as price remains above that level, the broader uptrend on higher time frames remains technically intact.
Technical observers also point to Fibonacci retracement confluence between the 0.618 and 0.786 levels.
This overlap aligns with the multi-year ascending trendline. Such confluence zones are often monitored for potential continuation moves.
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Upside Targets and Market Conditions
If AAVE maintains support and breaks above descending resistance, traders have outlined several upside levels.
The first resistance is near $190, followed by $345 and $579 based on historical supply zones. Some projections extend toward $1,000 in a strong market cycle.
Reaching those levels would represent a large percentage move from the lower support band.
However, analysts note that such targets depend on broader crypto market strength and sustained demand.
Breakout confirmation would require strong volume and a weekly close above resistance.
For now, AAVE remains within a compression structure at major support. Traders continue to assess whether the 86% correction has formed a re-accumulation base.
The coming weeks may determine whether the setup leads to expansion or renewed downside pressure.
Source: https://www.livebitcoinnews.com/aave-at-major-support-after-86-crash-10x-setup-forming/
