The AAVE token broke above a key resistance level Wednesday, and technical indicators suggest a run toward $105 could be in the cards. Moving average support and a positive market structure are giving traders a reason to watch the DeFi token closely.
Why the breakout matters
AAVE had been trading in a tight range for weeks before pushing past the resistance zone that had kept prices in check since early October. The breakout happened on above-average volume, something traders often look for to confirm the move isn't a false one. The next major target sits at $105, a level that would represent a roughly 15% gain from current prices.
Technical indicators align
Multiple technical indicators are now pointing in the same direction. The 50-day moving average has been providing solid support, and the shorter-term moving averages are sloping upward. The market structure, which tracks higher highs and higher lows on shorter timeframes, is also bullish. When these three factors line up — resistance break, moving average support, and positive structure — traders often call it a “three-legged” setup. That doesn't guarantee the move will play out, but it does increase the odds.
The $105 target is the immediate one, but it's not the only level to watch. If AAVE clears that, the token could face another resistance band near $115, a zone that acted as support back in August. On the downside, the broken resistance around $90 now becomes the first support level. A drop back below that would invalidate the breakout and could send AAVE back toward the 50-day moving average near $85.
Volume will be the key tell. Wednesday's push was accompanied by a noticeable spike in trading activity, and continued volume will be needed to sustain the rally. Thin moves above resistance have a habit of reversing quickly.
The broader crypto market has been mixed this week, with Bitcoin hovering around $30,000 and altcoins showing no clear direction. AAVE's breakout stands out as one of the cleaner technical setups in the sector right now. Whether it can hold and make the push to $105 will likely be decided in the next few trading sessions.
