AAVE Breaks Descending Channel, Eyes $350 as Bullish Momentum Builds

AAVE broke out of a long-running descending channel on its daily chart on Wednesday, January 28. This could be a sign that the market is changing its trend after weeks of a steady downtrend, highlighted by a crypto analyst known as Whales_Crypto_Trading. This is the first sign of a technical buy attempt by the bulls as the selling momentum weakens.

Source: Whales_Crypto_Trading X Post

The price is again settling in the vicinity of the old resistance zone, and this is an area of interest where traders are looking closely. If the price is able to stay above this reclaimed resistance zone, it is possible that a short- to mid-term rally may be seen up towards $350, or if it does not, the price will fall and the breakout will be invalidated.

Also Read: AAVE Struggles at $144 Support Despite Strong DeFi Fundamentals

AAVE Technical Indicators Point to Trend Reversal 

According to TradingView, as of Wednesday, January 28, AAVE is showing signs of a short-term bounce following its sudden plunge mid-period.

The asset broke down from the 170-175 zone and found support in the 147-150 range, where it established a strong foothold. From the latest candles, it is showing higher lows and is again trying to test the 158 level, indicating a calmness in price volatility.

Source: TradingView

Momentum indicators are also bullish. The MACD has now gone into positive territory, with the MACD line crossing above the signal line, indicating the buildup of bullish momentum.

At the same time, the RSI has also moved up to 59, crossing the midline, indicating the buildup of momentum without entering the overbought territory.

Tangem Launches Aave-Powered Yield Mode

Apart from the advantageous pricing arrangement, Tangem also launched Yield Mode on Tuesday, January 27, where a new feature was introduced, allowing users of the wallet to tap into its yield directly within the Tangem Wallet.

This will allow users of the wallet to supply their supported crypto assets directly into Aave without having to visit other sites, making it easier and simpler for users.

The Yield Mode leverages the token, the most popular decentralized lending protocol, and offers algorithmic interest rates that reflect real-time supply and demand dynamics.

Tangem is a non-custodial access layer, not a custodian, and this follows the trend of wallet-native DeFi tools that integrate lending and yield generation in a seamless manner, ensuring self-custody and paving the path for mainstream crypto adoption worldwide.

Also Read: Ethereum Whale Returns, Borrows $2M via Aave as AAVE Targets Breakout