The Aave token has been building a setup that may catch traders' attention. The current price of AAVE is hovering around $188.37, but the 3-week chart reveals a story of accumulation and consolidation extending back to 2021.
The crypto analyst from Altcoin Piooners shared a chart showing a structure that resembles a typical cup and handle, and the implications are interesting.
From the highs of 2021 to the lows of 2024, the price of Aave has formed a massive cup on the 3-week chart. This formation is not just a shape; it represents years of market psychology.
Altcoin Piooners indicates that this cup formation has completed with classic trading volume drying up at the bottom, meaning that selling pressure has diminished and accumulation has become clear. The price is now hovering around $191 after bouncing from the handle area.
The formation of the handle indicates a potential breakout.
After the cup, the AAVE token entered the handle phase, a period of tight consolidation with higher highs along the rising support curve. Altcoin Piooners indicates a decrease in volatility during this phase, which is exactly what traders look for before a strong breakout. Every dip has been firmly rejected, demonstrating that demand is solid. RSI levels resetting at 50 indicate that the token is preparing for another explosive move, similar to previous cycles.
Aave is not just considered chart patterns; the fundamentals add weight to the setup. Lending dominance and the growth of the GHO stablecoin act as strong tailwinds. The combination of technical positioning and macroeconomic factors creates a scenario where the price of AAVE could gain momentum quickly once it breaks away from the handle.
Altcoin Piooners analysis shows potential targets if AAVE surpasses the neckline between $350-$400. Measured moves in the short term could see the AAVE token reach $600-$800. The forecast for mid-2026 places the token between $1,200-$1,500, with full cycle mania potentially pushing it over $2,000. Support remains strong at the handle, with no invalidation unless there is a monthly close below $120.
Also read: JasmyCoin (JASMY) receives government-level approval in Japan: Here's why it's huge.
The chart tells a clear narrative. AAVE has formed a massive cup, entered the disciplined handle, and is now accumulating for a potential breakout. Altcoin Piooners confirms that until the handle support breaks, this setup is a typical preparation for what could be a major recovery in DeFi.
Observing how the price of AAVE responds in the coming weeks may provide some of the clearest signals for the next phase of growth.
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