• AAVE bounced back to $193 after touching $200, gaining 17% during a broader altcoin surge.
• Technicals show improving momentum, with price reclaiming $178 support and breaking above the 50-day EMA.
• Bulls target $227 and $320 next, though a Bitcoin drop below $90k could slow the rally.

Aave spent weeks drifting lower, barely getting any real attention, but the tone shifted a bit on Monday as the token pushed back into the green. AAVE traded around $193 at the time of writing after briefly tapping the $200 mark — a solid bounce considering how deep the recent dips had been. And with bullish energy spreading across the broader market, especially with Bitcoin holding strong, traders are starting to wonder if Aave might be lining up for something bigger.

AAVE Rides the Altcoin Rebound After a Long Downtrend

Even though Aave has been stuck in a downtrend for more than three months, the past week finally brought a bit of relief. Prices are now comfortably above the late-November low of $147, which was hit on November 21, 2025. On Monday, AAVE ran up to $200 before cooling back to the $193 area, but the move still reflects a noticeable shift in momentum.

The broader altcoin market came alive on Dec. 8. Bitcoin showed strength above $90k, Ethereum climbed past $3,100, Solana touched $136, and Chainlink pressed above $13. Aave joined the wave, jumping nearly 17% for the week — riding both increased DeFi optimism and a spike in stablecoin activity.

On Dec. 5, Aave’s lending pools saw massive USDT transfers, the kind of inflows that usually hint at growing borrowing demand and rising liquidity. Analysts point to this, plus whale-sized movements, as early signals that AAVE could extend the recovery if momentum holds.

AAVE Price Forecast: Bulls Push Back as Santa Rally Season Begins

December has a history of surprising crypto traders with late-year strength, and many believe this market could be setting up for another “Santa rally.” Aave’s 17% weekly surge fits right into that seasonal pattern — even though we’re still early in the month and volatility remains a real threat.

Investors are also watching the Federal Reserve’s expected rate cut this week, which could fuel additional upside across risk assets. If AAVE reclaims and holds above the $200 zone, bulls might get the spark they’ve been waiting for. But the downside still exists, and support sits much lower if the broader market stumbles.

From a technical point of view, the picture is shifting in favor of the bulls. AAVE is trading above the critical support-resistance flip at $178 — a level that once helped launch the May–August 2025 rally up toward $385. The year-to-date downturn dragged price back through that level to $147 in November, even hitting $128 on October 10. That entire stretch put AAVE squarely inside a descending channel.

Still, momentum indicators are turning. The RSI sits around 52 and is sloping upward, suggesting more room for upside before hitting overbought levels. AAVE also just broke above its 50-day EMA — a classic bullish confirmation signal that often shows up right before stronger moves. The 50EMA now sits around $201, marking an important threshold.

If Bitcoin corrects below $90k, AAVE could stall near that same $200–$201 zone. But if bulls keep pressing, breakout targets sit at $227 and then $320 — levels that would mark a much deeper trend reversal.