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Technical Forecast: The AAVE indicator is heading towards a short-term breakout.
The AAVE token has stabilized above its short-term support level at $220 at the time of writing this report on Wednesday, as sentiment surrounding the token has improved following developments regarding Aave V4.

A daily close above the same level of $220 on the daily chart would strengthen the bullish grip, increasing the chances of AAVE extending its recovery above the resistance at $236.

Investors should monitor a potential buy signal from the Moving Average Convergence Divergence (MACD) (, which appears when the blue line crosses and settles above the red signal line.

The daily chart for the AAVE/USDT pair

On the contrary, the MACD indicator maintains a sell signal issued on October 10, when the cryptocurrency market experienced the largest debt reduction in its history. The risk-off trend will remain intact if the blue MACD line stays below the red signal line.

The 50-day Exponential Moving Average )EMA( has shown a death cross pattern when it crossed below the 100-day Exponential Moving Average on October 15, confirming the prevailing trend towards risk aversion. Aave's stock risks a second death cross if the 50-day Exponential Moving Average crosses below the 200-day Exponential Moving Average, increasing the likelihood of a further decline towards the support level at $200.
AAVE1,2%
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Before00zerovip
· 2025-10-23 20:50
Aave has regained its position above 220 Dollar as sentiments in the ecosystem improve due to developments in DeFi. Aave V4 aims to eliminate hash and inefficiencies in DeFi lending protocols. Aave V4 relies on frameworks that aggregate assets to meet order liquidity requirements.
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