• AAVE is currently trading at $195.53 with a 24-hour trading volume of $407.47 million.
• Keeping the key support at $171 is imperative, as it could help the recovery continue to $230.
• Derivatives data indicate divergence, with trading volumes down 27.17%, whereas open interest is up 7.68%.

Aave (AAVE) is experiencing fluctuating price movements as the market absorbs its recent recovery. Currently, AAVE is trading at $195.53, with a nominal loss of 0.47% over the last 24 hours. Despite the minor dip, activity around the token remains steady, with 24-hour trading volume reaching $407.47 million. Token’s total market capitalization stands at $2.98 billion, giving it a 0.10% share of the overall crypto market.

The latest pullback comes after AAVE climbed from last week’s lows, a move that initially pointed to growing buying interest. However, the pace of that recovery has slowed, and price action has become uneven in the short term.

Holding $171 Support Boosts AAVE Rally

As per the analysis shared by More Crypto Online, the broader structure still favors further upside, provided a key support zone remains intact. The $171 level is now acting as an important floor for the token. Holding above this area keeps the recovery scenario alive and opens the path for another move upward.

If AAVE can sustain its support levels and buying momentum starts building, it could make another attempt to move towards $230, which is the next major resistance that AAVE is anticipated to reach. This would require some more follow-through strength from token after the recent phase of range-bound trading.

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AAVE Derivatives Indicate Divergence in Activity

Data from AAVE’s derivatives reveals that there is a disparity between trade volume and position sizes. Trade volume declined by 27.17% to $421.66 million, indicating that less trade is taking place. This means that fewer people are engaging with the markets to buy or sell. Open interest rose by 7.68% to $290.35 million. 

A reading of 0.0046% for OI-weighted means that there is still a strong relationship between price actions and open interests, as opposed to purely speculative volume surges. 

It shows a balanced market where the momentum of leverage is not strongly driving prices to the upside or downside. Such market behavior is often witnessed during the course of a consolidation phase, where traders are preparing for a strong breakout but are not yet engaged in substantial trading.

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