AAVE Struggles at $144 Support Despite Strong DeFi Fundamentals

Aave’s native token, AAVE, tested a critical support level near $145 during Friday’s trading session, as traders assessed weakening bearish momentum despite ongoing volatility across the broader crypto market, despite strong DeFi growth. The price zone has historically acted as a demand area, making it a key level for determining the token’s short-term direction.

Aave Maintains Strong Position in DeFi Lending

Aave remains one of the largest Ethereum-based DeFi lending protocols, allowing users to supply assets and earn variable on-chain yields through decentralized liquidity pools.

In recent months, yields on several markets of the network have continued to exceed those offered by traditional savings products, reinforcing the protocol’s relevance within the broader DeFi ecosystem.

However, while the network’s fundamentals remain intact, token price performance is increasingly driven by market sentiment and technical conditions, rather than protocol usage alone.

This divergence has placed greater focus on key price levels as investors navigate heightened volatility across digital asset markets.

Also Read: AAVE Set for $200 Breakout as Balance Expands Institutional DeFi Access

$144 Emerges as a Make-or-Break Level for AAVE

The crypto analyst, Ali, highlighted that experts are paying particular attention to the price zone of $144.93 to $145, as this price zone is recognized as a strong demand zone. If the price holds above this zone, it may be a positive indication for short-term buyers to return to the market.

Source: Ali charts

On the other hand, if the breakdown is confirmed, the downward momentum could continue to accelerate the selling activity, which may lead to more severe corrections in the price of AAVE. Analysts have pointed out that the volume will be key to ascertaining whether the bulls will defend the level.

Momentum Indicators Still Point Lower

According to TradingView data, the current value of the RSI is at 37.36, which shows that the market is moving towards the oversold zone but is yet to reach the extreme zone.

Overall, the slope of the RSI is declining, reflecting that the bears are dominating the market, and the bulls are struggling to make their presence felt, as the short-term rallies are likely to face resistance at the 40-45

Source: TradingView

The MACD line (-26.27) is significantly low compared to the signal line (-21.32). Moreover, it is also in negative territory, which confirms strong bearish momentum.

The histogram also displays slightly decreasing red bars; otherwise, it is clearly in a bearish trend. The MACD crossover above its signal line is needed to confirm any potential trend changes.

Why This Matters

AAVE is nearing a critical price level where market direction will be decided, potentially signaling renewed momentum or confirming a deeper corrective phase.

Price action around this key zone may determine whether Aave’s leading DeFi lending protocol attracts buyers or faces continued downside pressure.

Also Read: Ethereum Whale Deposits $19M Into Aave: Could It Push the AAVE to New Highs?