Aave breaks bullish ground, eyes $390 on healthy pullback

Aave is currently trading at a key resistance level after breaking the market structure with a confirmed higher high. Even if a rejection occurs, the setup favors a bullish continuation toward $390 in the coming weeks.

Aave (Aave) has officially shifted its market structure following a decisive move above the recent swing high. This break confirms a higher high and signals a trend reversal from bearish to bullish. While the asset now tests a key resistance zone, any short-term rejection would likely be part of a healthy pullback within a broader uptrend.

The next potential high-time-frame (HTF) support lies around $222.90, where several technical indicators converge. If the price pulls back to this level and holds, it could create a base for the next leg up toward the HTF resistance at $390.

Key technical points

• Market Structure Break: Aave confirmed a trend reversal with a new higher high
• Support Confluence at $222.90: Includes 0.618 Fibonacci, HTF support, bullish order block, and point of control
• Rally Target at $390: Major resistance level could be next if support holds

AAVEUSDT (1D) Chart, Source: TradingView

Aave’s price action has been steadily bullish since establishing a swing low at $129.05. From that point, the asset has printed a series of strong bullish impulses that culminated in a break of market structure, with price taking out the previous swing high and forming a higher high. This marks the beginning of a bullish trend, which remains valid as long as higher lows are maintained.

Price is currently testing an overhead resistance zone. If rejected, the most likely scenario would be a corrective pullback rather than a full trend reversal. The $222.90 level stands out as the next HTF support and is an ideal candidate for a higher low to form. This region includes the 0.618 Fibonacci retracement, a previously untested bullish order block, and the point of control based on the current volume profile.

The presence of multiple layers of support makes this level significant. A controlled pullback into this area would likely be met with buying interest, potentially launching the next impulsive leg higher. If price holds this zone successfully, it opens the door to a rally toward $390, a key HTF resistance level.

What to expect in the coming price action:

Even if Aave faces rejection from the current resistance, the bullish market structure remains intact. A healthy pullback into the $222.90 region would offer a strong opportunity for trend continuation. As long as this support holds, the probability of an upward move toward $390 remains high.