AAVE has snapped its recent downtrend with an intraday 8% surge, pushing price back toward the $96 mark as buyers stepped in decisively near the $90–$95 demand zone. The move follows a prolonged phase of controlled selling, where price consistently printed lower highs before stabilizing near support. The shift is now visible on the daily chart, where a bullish engulfing candle marks a clear rejection of lower levels and signals strong demand absorption.
AAVE price is now pressing into its first layer of resistance near $100, setting up a potential continuation if momentum sustains. With buyers stepping in at the lows and structure beginning to shift, attention now turns to a critical level, Can AAVE price reclaim $100 and extend the move higher?
Derivatives Positioning Signals Early Shift in Market Bias
AAVE’s price rebound is now being backed by improving derivatives activity, pointing toward a shift in trader positioning rather than a short-lived bounce. Over the last 24 hours, volume has risen 14.65% to $293.94 million, while open interest climbed 8.04% to $231.15 million, indicating fresh positions entering alongside price strength. This suggests growing participation as the market reacts to the reversal from the $90–$95 demand zone.
At the same time, positioning remains slightly tilted toward the short side, with net longs around 295.78K compared to 345.10K net shorts. However, the key development is the stabilization in net delta after a prolonged decline, signaling that aggressive short buildup is starting to slow. This setup often precedes directional expansion.
With shorts still elevated but no longer increasing pressure, the market becomes increasingly sensitive to upside moves, especially near key resistance levels. The positioning imbalance remains, but the shift in momentum suggests that sellers are losing control at the margin.
AAVE Price Analysis: Reversal Structure Builds as $100 Emerges as Breakout Trigger
AAVE’s price structure is now transitioning from a sustained downtrend into an early-stage recovery phase. After declining steadily over recent weeks, price found support in the $90–$95 demand zone, where selling pressure began to fade. Instead of continuing lower, AAVE entered a stabilization phase, signaling absorption of supply and exhaustion among sellers.
That shift turned decisive with the formation of a bullish engulfing candle, marking a strong reaction from buyers and the first meaningful disruption of bearish structure. Currently, AAVE token is now approaching the 20-day moving average near $97–$98, which acts as the first resistance layer. A sustained move above this zone would confirm strengthening short-term momentum.
However, the defining level remains $100. This level aligns with prior breakdown structure and serves as a psychological barrier where a significant number of short positions are likely concentrated. A breakout above $100 would not only confirm structural reversal but could also trigger a short covering rally, accelerating price toward the next resistance cluster. If momentum expands, the next upside zone lies near $110–$115, where the 50-day moving average and previous supply converge.
On the downside, the $90–$95 zone remains critical support. A breakdown below this region would invalidate the current recovery structure and shift the market back into bearish continuation. The structure has shifted, but confirmation now depends entirely on whether $100 breaks with strength.
AAVE Price Outlook: $100 Becomes the Line That Defines the Next Move
AAVE is now positioned at a key inflection point, trading between firm support at $90–$95 and resistance at $100. A breakout above $100 could unlock momentum quickly, driven by structural confirmation and the potential unwinding of short positions, opening the path toward $110 and higher. However, a failure to reclaim this level, however, may keep price range-bound in the near term. The recovery is in motion, but $100 remains the level that will decide whether this becomes a breakout or just another bounce.
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