AAVE Price Set to Hit $500, But It Might Drop to $220 First: Expert Analysis

Key Takeaways:

• Crypto experts suggest that the AAVE coin price could drop to $260 before likely reaching $500.
• The DeFi token experienced resistance at $400, hinting at a bearish trend in the near term.
• Despite short-term bearish indicators, the long-term trend remains intact above key moving averages.

The AAVE Finance token price has dropped by 9.63% in the last 24 hours to $335.36. However, it has increased by 7.27% in the past week and 96.64% over the previous month. Crypto experts believe that there might be a price drop before it could rise to as much as $500.

Technical indicators show mixed signals but suggest AAVE prices could increase in the near term. Still, some bearish signs support crypto analysts' predictions of a potential drop before a significant rally.

Related: AAVE Coin Spikes Following the Successful Launch of Aave DAO’s v3.2 Upgrade

AAVE Price Prediction: $260 Before $500?

The price target for the AAVE Finance crypto token is between $450 and $500 in the near term. However, if the price doesn't stay strong, it could drop to between $260 and $220.

A technical analysis provider on X shared insights about AAVE. They noted a double-top pattern that usually indicates a potential price drop.

$AAVE – Clean double top rejection [H4]! 🚨

Bulls must push above the 400$ level, otherwise I'll look at the following supports to set buy orders:
290 – 265 – 240 – 220$

If #bitcoin dump as I expect, #aave price could make a LL! 🚨📉

I'm expecting a big correction downard… pic.twitter.com/uJgW3yKp6D

— 🧙 Crypto_Jobs🧙‍♂️ TA & FA 🎯 (@CryptoJobs3) December 26, 2024

The tweet highlighted that the AAVE token hit resistance at $400 and failed to break through. This could suggest a bearish trend, so traders should be alert for possible price declines.

Key support levels to watch are $290, $265, $240, and $220. If AAVE's price falls, these levels could become good buying opportunities, allowing traders to take advantage of lower prices.

There is also a concern that Bitcoin's price might drop. Since Bitcoin (BTC) often affects the overall crypto market, a decline could bring AAVE down to a new low, supporting a bearish outlook. This connection highlights the need for traders to monitor Bitcoin's performance closely.

Related: Powell Slams Door on Fed Bitcoin Holdings

Despite this cautious view, there is hope for recovery in the near future. A significant drop might create a chance for a rebound, with expectations that the price could rise to $500 afterward.

Key Indicators to Watch

Another crypto analyst, @Crypto_Scient, also has a positive view of AAVE. They set a “LIMIT LONG” order for the AAVE Coin price, aiming for the 4-hour untapped Order Block (OB) and the 4-hour 100 Exponential Moving Average (EMA). The chart suggests a possible entry point of around 373.40 USDT, with a price target near 449.70 USDT.

Scient believes AAVE is strong as we approach the “Trump ceremony,” which could influence the market since Donald Trump's inauguration is set for Monday, January 20, 2025.

Moreover, Bitcoin analyst @Nebraskangooner also sees a “strong recovery” in AAVE, noting it is forming a bullish J-hook pattern, which signals an uptrend. If this momentum continues, he suggests a potential target of $450. The chart shows AAVE recovering from a dip, and the J-hook indicates a possible trend reversal.

$AAVE (per request)

Strong recovery yesterday. Looks like a bullish J-hook

Would target $450 area if this gets momentum pic.twitter.com/P5ixTGXMU3

— Nebraskangooner (@Nebraskangooner) December 24, 2024

While bearish indicators suggest caution, overall sentiment remains optimistic about recovery.

TradingView charts and indicators of the AAVE/USDT trading pair paint a bearish picture in the short term. The substantial 9.82% price drop to 332.99, the break below the middle Bollinger Band at 334.59, and the breach of the oblique support line at 344.30 all suggest significant selling pressure.

However, while declining, the price remains above the 50-day MA at 249.48 and the 100-day MA at 200.47, hinting that the longer-term trend may still be intact.

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