AAVE Faces Key Support at $278 Amid Bearish Pressure and Long-Term Growth Potential

• AAVE price fell below $300 after being rejected at $336.

• The bears are targeting support levels at $278 and $231, while bulls defend the channel support established since April.

• AAVE has reached $3 trillion in lifetime deposits, solidifying its position among the top DeFi protocols.

AAVE price analysis reveals a struggle below $300, with a focus on the $278 support level. This article explores the current market dynamics and future outlook for AAVE.

What is AAVE’s Current Market Situation?

AAVE is facing significant resistance below $300 after a rejection at $336. The price action is currently influenced by bearish trends, with the primary keyword AAVE indicating a potential struggle to maintain upward momentum.

How Are Bears Influencing AAVE’s Price?

AAVE’s recent rejection from $336 marked a pivotal moment. Data indicates a bearish engulfing candle formation, shifting short-term momentum towards sellers. Following this, the asset dropped below $317 support and settled around $296 on August 16.

Frequently Asked Questions

What are the key support levels for AAVE?

The key support levels for AAVE are currently at $278 and $231, which are critical for maintaining bullish sentiment.

How does AAVE’s performance compare to other DeFi protocols?

AAVE has surpassed $3 trillion in lifetime deposits, making it one of the largest DeFi protocols in the market.

Key Takeaways

• Current Resistance: AAVE is facing resistance below $300 after a rejection at $336.
• Support Levels: Key support levels are at $278 and $231, crucial for future price movements.
• Market Position: AAVE has achieved over $3 trillion in lifetime deposits, solidifying its status in the DeFi space.

Conclusion

In summary, AAVE is navigating a challenging market landscape, struggling below $300 while key support levels are under scrutiny. The asset’s long-term fundamentals remain strong, but immediate price action will depend on its ability to reclaim critical resistance levels.

AAVE struggles below $300 after rejection from $336. With $278 support in focus, bulls eye a rebound while bears tighten control on short-term price action

• AAVE price dropped under $300 after rejection from $336 resistance zone.
• Bears target $278 and $231 while bulls defend channel support since April.
• AAVE hits $3T lifetime deposits, securing its place among top DeFi protocols.

AAVE is at a crossroads after slipping below $300, caught between bearish rejection from $336 and bullish long-term fundamentals. Price action now hinges on whether the $278 support zone can hold against rising sell pressure.

Bears Take Control After $336 Rejection

AAVE’s latest rejection from $336 marked a turning point. According to data from Ali Charts via X, a bearish engulfing candle formed, flipping short-term momentum in favor of sellers. The asset slipped below $317 support and broke past the $300 level, settling near $296 on August 16.

This move followed a strong rally from late July, where price surged from $235 to $336. But the uptrend quickly lost steam after price failed several times at resistance. The structure then shifted, moving from higher highs and lows to lower ones, showing the market had entered a corrective phase.

Immediate support lies at $290, but the $278 zone remains the key level to watch. A decisive break below $278 could expose $231, the early August swing low where strong buying once emerged. Unless price reclaims $317–$320, bearish pressure is likely to dominate in the near term.

Bulls Highlight Long-Term Uptrend

Not all analysts agree with the bearish scenario. Sjuul AltCryptoGems points out that AAVE has respected an ascending parallel channel since April 2025. Price has kept building higher lows within the channel, hinting that the bigger uptrend is still holding strong.

The analyst also points out three rounded bottoms around $160, $200, and $260, each fueling strong rallies. Each of these patterns sparked strong rallies, adding weight to the bullish setup. Breaking above the $336 neckline could push AAVE toward $360 and even $400 — prices last seen in early 2024. To keep that chance alive, AAVE needs to stay above $300 and climb back to $336. If not, the token could get stuck trading between $280 and $320.

Strong Fundamentals Support Growth

While technicals are divided, AAVE’s fundamentals remain a bright spot. Reports confirm that the protocol has surpassed $3 trillion in lifetime deposits since 2020, making it one of the largest DeFi players by scale.

Active borrows have also hit a new record above $25 billion, while Coinbase’s Stablecoin Bootstrap Fund has injected liquidity into AAVE to strengthen capital markets.