As the crypto market experienced a broad downturn, Aave (AAVE) fell nearly 10%, hitting a local low around $153. The altcoin is currently trading between $155 and $160, but a developing chart pattern suggests a price breakout may be imminent.
In a January 23 post on X, market analyst Ali Martinez shared an analysis of the AAVE/USD 4-hour chart, indicating the altcoin is nearing a critical point. A key support zone around $144 lies at the base of a broader downward structure that has shaped AAVE’s price action since last year.
Martinez notes that AAVE is trading within a falling wedge pattern, marked by a series of lower highs under a descending trendline and relatively steady support near $145. This pattern often signals consolidation after sustained selling pressure, as sellers lose momentum and buyers hold a key level.
After peaking above $350 earlier in the cycle, AAVE has undergone a steady correction, declining through support levels near $240, $200, and $162. Losing these levels shifted short-term momentum to sellers, making the current support range especially significant.
AAVE is now trading in the mid-$150s, close to retesting the $144.93 support. This level has served as a demand zone multiple times during the current downtrend, reinforcing its importance.
According to Martinez, a clear break below $145 could trigger a sharper decline toward the next major support around $125. In that case, closing below the wedge would likely confirm a continuation of the broader downtrend.
On the other hand, holding the $145 support could set the stage for a technical rebound. Defending this level, combined with a break above the descending trendline, might allow AAVE to reclaim higher resistance zones near $162 and potentially $200 over time. While such a move wouldn’t immediately reverse the larger corrective trend, it would signal improving market balance and reduced selling pressure.
At the time of writing, Aave is trading at $156.99, down 0.76% over the past 24 hours. Daily trading volume has increased by 6.07% to $362.59 million. With the price compressing toward the apex of the falling wedge, traders should anticipate higher volatility in the coming sessions. For now, the $144.93 level acts as a pivotal point for determining AAVE’s next directional move.
Frequently Asked Questions
FAQs The Price of Aave and the 145 Level
BeginnerLevel Questions
1 What is Aave
Aave is a decentralized cryptocurrency that powers a popular lending and borrowing platform on the blockchain It allows users to earn interest on deposits or take out loans using their crypto as collateral
2 Why is the 145 price level so important for Aave
In trading certain price levels act as major support or resistance 145 has historically been a key level where Aaves price has either bounced back up or struggled to break through Many traders watch it closely making it a selffulfilling point of interest
3 What does support and resistance mean
Support A price level where buying interest is historically strong enough to prevent the price from falling further Its like a floor
Resistance A price level where selling pressure is historically strong enough to prevent the price from rising further Its like a ceiling
4 What happens if Aaves price falls below 145
If it breaks and stays below 145 on significant trading volume it could signal a shift in market sentiment from bullish to bearish This might trigger more selling potentially pushing the price down to look for the next major support level
5 What happens if Aaves price holds above 145
If the price touches 145 and then bounces back up it confirms that level as strong support This can build buyer confidence and could be a launching point for a move toward higher price levels
Advanced Practical Questions
6 Beyond chart levels what fundamentals affect Aaves price
Key factors include Total Value Locked in the protocol platform usage and fee revenue changes in interest rates updates to the protocol and overall sentiment in the DeFi and crypto market
7 Is the 145 level a guarantee for future price action
No Technical levels are not guarantees they are indicators of historical market psychology A major news event a broad market crash or a fundamental shift in the protocol can overpower any technical level
8 How do traders use this 145 information