The post Is Aave’s 29% bounce bull trap? Decoding the long-term bearish pressure appeared on BitcoinEthereumNews.com.

Aave gave long-term investors a glimmer of hope with the price action of the past two weeks. Since making a low of $92.25 on Friday, the 6th of February, the DeFi protocol token’s price has rallied 29.7%. Source: AAVE/USDT on TradingView It was trading at $119.64 at the time of writing, but the long-term trend remained firmly bearish. Moreover, the 3-day chart above highlights the series of lower highs and lower lows AAVE has made since the final week of September. In the summer of 2024, the $117.57 level had been an obstacle to bulls’ attempts at recovery. They overcame the resistance in August 2024, kickstarting a rally that nearly reached $400 by the end of that year. This was the same long-term level that AAVE was trading at once again. In fact, the Fixed Range Volume Profile tool was used from August 2024, when the S/R flip occurred, to the present. It showed that the Value Area Low (dotted blue) was at $121.2. The Point of Control (red) was at $168. The FRVP highlighted the long-term bearish pressure on AAVE. The bulls simply have to defend the $80-$100 demand zone if they want to prevent a slide to $50 later this year. The OBV was above the April 2025 lows, which was a hopeful sign for the bulls. The protocol’s revenue-generating capacity remained strong, noted an AMBCrypto report. The bearish warning signs for Aave The Total Value Locked briefly climbed to $27.7 billion, but over the past ten days, it has receded to $26.3 billion. News that BGD Labs, one of the top service providers to the Aave DAO, would quit by early April highlighted the Aave ecosystem division. Source: AAVE/USDT on TradingView The 4-hour chart reflected the market sentiment behind the altcoin. The $130 area has been a…

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Filed under: News - @ February 22, 2026 9:07 pm