Aave ($AAVE) Dips Into Key Support — Could This Pattern Trigger a Bounce Back?

Key Takeaways

• AAVE has dropped nearly 23% in 30 days, but price is now holding a major long-term support zone between $113–$129.

• The weekly chart shows a potential double bottom pattern, signaling a possible trend reversal if support continues to hold.

• A reclaim of the 100-week moving average near $137.8 could strengthen bullish momentum and open the path toward $378–$400 resistance.

The broader altcoin market has come under heavy selling pressure over the past few days, with sentiment deteriorating rapidly across major assets. Ethereum (ETH) has plunged more than 28%, setting the tone for the wider market. Unsurprisingly, Aave ($AAVE) hasn’t been spared, shedding nearly 23% over the past 30 days.

While short-term sentiment remains fragile, a closer look at AAVE’s weekly chart suggests price has now reached a technically important area — one that could serve as a foundation for a potential bounce if buyers continue to step in.

Source: Coinmarketcap

Double Bottom Pattern in Play?

On the weekly timeframe, AAVE appears to be forming a potential double bottom pattern, a classic bullish reversal structure that often develops near the end of prolonged downtrends.

The first bottom formed when AAVE dropped into the $113–$129 support zone, followed by a strong recovery attempt that pushed price toward the neckline resistance between $378 and $400. That rally ultimately faced rejection, but the latest sell-off has brought AAVE right back into the same support region.

What stands out this time is the buyer response. Price has once again stabilized within the $113–$129 zone, suggesting that bulls are actively defending this area and are not yet ready to give up control. The repeated defense of identical lows strengthens the case for this zone acting as a major accumulation region.

Aave ($AAVE) Weekly Chart/Coinsprobe (Source: Tradingview)

As long as AAVE continues to hold above this level, the broader double bottom structure remains technically valid.

What’s Next for AAVE?

For the bullish setup to gain traction, AAVE must hold the $113–$129 support zone and reclaim the 100-week moving average, currently sitting near $137.52. A sustained move above this level would signal improving momentum and mark an important shift in market structure.

If buyers manage to push price higher from here, the next major upside objective would be the neckline resistance at $378–$400. While that target may appear distant, a successful double bottom confirmation often leads to sharp recovery moves — especially if broader market conditions stabilize.

On the downside, the $113–$129 region remains the line in the sand. A decisive breakdown below this zone would invalidate the bullish setup and open the door to deeper downside risk.

Final Outlook

Despite recent weakness, AAVE’s technical structure remains constructive. The repeated defense of key support, the developing double bottom formation, and price hovering near the 100-week moving average suggest the token may be approaching a pivotal inflection point.

If accumulation continues and broader crypto sentiment improves, AAVE could be setting the stage for a meaningful recovery phase. Until then, all eyes remain on how price behaves around this critical support zone.

Disclaimer: The views and analysis presented in this article are for informational purposes only and reflect the author’s perspective, not financial advice. Technical patterns and indicators discussed are subject to market volatility and may or may not yield the anticipated results. Investors are advised to exercise caution, conduct independent research, and make decisions aligned with their individual risk tolerance.

About Author: Nilesh Hembade is the Founder and Lead Author of Coinsprobe, with over 5 years of experience in the cryptocurrency and blockchain industry. Since launching Coinsprobe in 2023, he has been providing daily, research-driven insights through in-depth market analysis, on-chain data, and technical research.