AAVE price bounces from $240 as whales accumulate, but momentum shows signs of weakness

AAVE price staged a sharp intraday rebound from the $240 level amid whale accumulation, but fading momentum indicators suggest the recovery may face headwinds unless key support holds.

Aave (AAVE) price saw a strong rebound today, bouncing off the key $240 support level after a sharp drop from $264 yesterday. The move appears to be driven by whale activity, with on-chain activity suggesting that large holders are buying the dip in size.

According to data from Lookonchain, two major whale wallets accumulated a combined 29,739 AAVE — worth approximately $7.5 million — within the past 14 hours. One of them borrowed $5 million in USD Coin (USDC) from the Aave protocol to purchase 19,608 AAVE, bringing his total holdings to 280,673 AAVE. The other whale borrowed $2.5 million in GHO to acquire 10,131 AAVE none hours ago, bringing its total holdings to 120,513 AAVE.

While whale buying activity is a bullish sign, technical indicators are showing signs of weakness.

Looking at the daily chart, AAVE price is now testing a key support zone around $248 – $250, which coincides with the EMA 20.

Despite the broader bullish structure with higher highs and higher lows since April, momentum indicators are showing signs of weakness. The MACD has crossed bearishly with a widening negative histogram, and the RSI has turned down from overbought conditions, now hovering just above 50, suggesting that bullish momentum is fading though not fully broken.

A close below $248 could trigger further downside, with potential targets at $235 and $220, both of which served as previous support and consolidation zones. However, if the current support holds, bulls may attempt to reclaim higher levels, with major resistance around $280. The medium-term trend remains bullish, but the current test of support will likely determine whether this is a healthy pullback or the start of a deeper correction.