- Aave prints a TD Sequential buy signal, hinting at possible downside exhaustion and early signs of a market rebound.
- Price stability near $220 with higher trading volume reflects cautious optimism among market participants.
- Strong fundamentals and rising liquidity reinforce Aave’s resilience after recent weeks of bearish momentum.
Aave’s recent technical setup suggests that market weakness may be easing as traders respond to a fresh TD Sequential buy signal. Strengthening volume and stable price movement highlight growing investor interest after a prolonged downward phase.
TD Sequential Points Toward a Potential Shift
The chart shared by analyst Ali (@ali_charts) reveals a TD Sequential buy signal for Aave (AAVE/USDT) on the two-day timeframe. This setup suggests that bearish momentum could be reaching its terminal stage, with market sentiment shifting toward recovery. The TD9 pattern emerged following an extended series of bearish candles, a structure that typically precedes short-term reversals in digital assets.
Over the past few weeks, Aave has traded within a controlled downtrend characterized by consistent lower highs and lows. The decline intensified in mid-October, with the token falling from roughly $260 to a local low near $210. Such price action reflected widespread selling and liquidity-driven capitulation among market participants. The emergence of this signal, therefore, hints at possible stabilization as exhaustion phases often mark the beginning of cyclical rebounds.
Structurally, Aave’s price remains within a broader descending range but has found temporary support between $210 and $215. Candlestick patterns in this area indicate original buying interest and reinstatement of support for the lower boundary. A firm close above the $225–$230 region can consolidate bullishness and lead to $245–$260, where previous breakdown levels are now resistance.
Volume Growth and Liquidity Reinforce Buyer Activity
New events in the market, such as the alliance between Aave and Maple Finance, have infused new energies into its system. It is focused on introducing institutional-quality assets to decentralized lending that can introduce more participation and maximize long-term utility. Though the market remains cautious, the strategic progress is giving strength to the positive sentiment of the token.
Its market cap is $3.36 billion, which is roughly equal to its fully diluted valuation (FDV) of $3.53 billion, suggesting there is little inflation risk.
With 15.25 million AAVE already circulating out of a total supply of 16 million, the project has a sustainable tokenomics structure supportive of medium-term stability. Aave’s Market Cap/TVL ratio of 0.09252 further indicates that its on-chain value far exceeds its current market price, pointing toward relative undervaluation compared with other DeFi assets.
From a market structure standpoint, intraday charts reveal a price consolidation phase between $215 and $224. Repeated intraday rejections around upper levels show that traders remain measured in positioning, though volume expansion suggests accumulation rather than speculative trading. This setup creates a foundation for gradual recovery if broader DeFi sentiment strengthens.
Cautious Optimism Amid Evolving Fundamentals
New market trends, such as Aave joining hands with Maple Finance, have introduced new drivers into its system. It is looking to introduce institutional-grade assets into decentralized lending and the process might invite broader participation and maximize long-term utility. While the market remains cautious, strategic updates underpin the positive sentiment of the token.
Latest data shows that investors are closely monitoring Aave for affirmation of a trend reversal. Technicals point to fading bearish pressure, with increasing volume surges in new buying demand. Sustained closes above $225 would affirm the TD Sequential signal, unleashing potential changes in market structure to a bullish bias.
Overall, Aave’s recent move is a delicate line between recovery and restraint. The TD9 signal serves as a technical alert of possible exhaustion, not a guarantee of reversal. Yet, with stable support levels and increasing liquidity, the market is showing early signs of returning confidence — a development that may set the stage for the next leg of Aave’s recovery.
