AAVE Rejected At $335 Resistance, Technicals Point To 31% Correction

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The Aave (AAVE) market is now showing signs of exhaustion after an impressive price rally earlier in August. Following a resounding rejection at the $335 price region, the DeFi token is exhibiting significant hawkish potential as reflected by a 12.03% decline in the past 48 hours. Interestingly, renowned market analyst Ali Martinez shares some potential downside targets derived from an emerging bearish pattern. Related Reading Exit Scam? DeFi Protocol CrediX’s Team Vanishes Following $4.5 Million Exploit 1 week ago AAVE Faces Double-Top Risk: $230 Target Looms If Key Supports Fail

In an X post on August 16, Martinez provides a technical outlook on the AAVE market, noting the formation of a double top pattern, i.e., a classic bearish candle formation that emerges when an asset rallies twice to a similar resistance zone but fails to establish a breakout, followed by a breakdown beneath the neckline support to form a “M” shape.

Looking at the AAVE chart below, the double top pattern is well observed in the two instances of a price surge to around the $335 price region, followed by decisive pullbacks in July and recently this August. Notably, AAVE has now slipped below the key support region between $300-$310, turning investors’ attention to deeper floor targets. Source: @ali_charts on X

Based on Martinez’s analysis, the pivotal level to monitor is $278–$280, which represents the neckline of the M-pattern. A decisive break and close below this level would validate the bearish projection and expose AAVE to further downside. The market expert projects that, should this neckline fail, the token could spiral toward $230, a level not seen since early summer.

On the flip side, invalidation of the bearish thesis requires AAVE to hold above the $278-$280, before launching a rebound to reclaim the $335 resistance zone. Such a move could reestablish bullish momentum, setting the stage for a potential test of the $370 region. Related Reading XRP Price Could Be Headed To New All-Time Highs Due To These Factors 1 day ago AAVESurpasses $3 Trillion In DeFi Deposits

In other developments, the Aave protocol has nowrecorded over $3 trillion in deposits since its launch in December 2020. According to data from DefiLlama, the prominent lending protocol currently holds $37.15 billion in total value locked (TVL) with major host chains including Ethereum, Arbitrum, Base, etc.

Meanwhile, the Aave token trades at $296 after a slight 0.71% loss in the last 24 hours. However, the DeFi token is down by 7.55% on its monthly chart, amid widespread crypto market corrections. Nevertheless, a year-on-year profit of 168.77% supports its position as a top-performing token in the present market cycle.

With a potential altseason on the horizon, Aave also remains one asset on investors’ alert, being part of the largest 40 cryptocurrencies based on crypto market cap. AAVE trading at $297 on the daily chart  | Source: Tradingview.com

Featured image from aave.com, chart from Tradingview