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Aave faces further downside if it fails to reclaim a key moving average
Aave was trading near $89 on Aug. 13, and the 20-week EMA around $96.7 has capped the token for nearly a year.
Aave, the token behind the Aave decentralized finance protocol, could drop another 45% toward about $50 if a recent rebound fails to break above a key resistance area, according to a technical outlook from Yahoo Finance.
Yahoo Finance cited Aave trading near $89 on Aug. 13 while remaining below its 20-week exponential moving average near $96.70. The 20-week EMA has acted as resistance since October 2025, and repeated recovery attempts have not turned it into support, with the token briefly approaching the level during its latest rebound from around $60 before pulling back.
If the rejection below the 20-week EMA persists, the analysis points to next major long-term support near $49.50 to $50, linked to a 1.0 Fibonacci retracement level and a multi year bottom area. The report also notes that Aave repeatedly found buyers around similar levels in 2022 and 2023 before later recovering toward roughly $400.
The bearish view would weaken if Aave decisively reclaims the 20-week EMA and holds it as support. In that case, the token could initially move toward a $105 to $125 range, which the article describes as prior horizontal resistance and the neckline of a developing inverse head and shoulders setup, with a breakout referenced as potentially targeting around $200. It said long term moving averages at about $131 for the 50-week EMA, $153 for the 100-week EMA, and $167 for the 200-week EMA could be barriers before any stronger longer term reversal.