AAVE turns bullish, but traders are cautious – What’s next?

• AAVE shows bullish momentum with support at $243.50 and resistance near $260 amid stabilizing trends.
• Market activity moderates as large transactions decline, with sentiment split between 137 bulls and 142 bears.

The crypto market is gearing up for a pivotal week with the release of CPI and PPI data, while Aave [AAVE] demonstrated promising performance. 

AAVE, priced at $250.83, gained 1.12% in the last 24 hours and 5.20% in the past week.

Its circulating supply of 15 million tokens gave it a market capitalization of $3.71 billion, supported by a 24-hour trading volume of $366.86 million.

Bullish trends for AAVE

AAVE’s moving averages indicated an optimistic trend. The 9-period moving average at $245.64 and the 21-period moving average at $243.10 were in a bullish crossover, with the price trending above both levels. 

This suggested short-term upward momentum, though resistance is expected around $252-$256. The next resistance level stands at $260, while support remains at $243.50-$245.00.

The Relative Strength Index (RSI) was at 52.95, signaling neutral momentum with a slightly bullish bias.

This level implied that AAVE was neither overbought nor oversold, leaving room for potential price movement in either direction. 

Meanwhile, the MACD indicator also reflected a mild bullish sentiment, with the MACD line at 2.14 crossing above the signal line at -3.10, though it remained below the zero line.

OI declines amid positive volume growth

According to Coinglass, AAVE’s Open Interest has dropped by 2.21%, reaching $213.97 million. This decline, a measure of active derivative contracts, suggests a slight reduction in market participation. 

Despite this, trading volume surged by 29.42%, reaching $499.94 million, indicating growing interest in spot markets.

Historical data revealed a surge in OI between October and December, peaking near $500 million. Since then, a gradual decline has been observed, aligning with AAVE’s price stabilization between $214 and $271. 

This correlation suggests that market activity is moderating as prices consolidate.

Cautious optimism

Data on large transactions (≥$100,000) showed a decrease in activity, with 159 transactions in the past 24 hours. 

The 7-day high was 1,070 transactions on the 3rd of February, while the 7-day low occurred on the 8th of February, with 144 transactions. 

This decline reflects reduced high-value activity since December, when AAVE’s price was near $385.

Read Aave’s [AAVE] Price Prediction 2025–2026

Sentiment analysis indicates a cautious market. Over the past week, 137 bulls and 142 bears were recorded, showing a slight bearish tilt. Historically, the sentiment has balanced, with no clear dominance from either side. 

These trends point to a market awaiting further cues from economic data and price developments.