Aave Price Prediction: AAVE Targets $174 Breakout as Funding Rate Flips Positive

Highlights:

• AAVE is trading at $170, and bulls aim to break the $174 resistance level.
• The funding percentage has also reversed, indicating that more traders are betting on AAVE’s price to soar.
• One crypto analyst believes seller liquidity has dried up and that AAVE will be forced into the $190-$205 supply range.

Aave (AAVE) is trading at approximately $170, with bulls targeting a break above $174 in the near future. Any upside disruption that exceeds this resistance will trigger a temporary spurt toward the buyer side of the market. Meanwhile, trading volume has increased by 7% to 331 million, indicating market growth. Note that the derivatives indicators indicate a positive market sentiment, supporting a bullish breakout in AAVE.

On the derivatives side, AAVE’s funding rate data indicate bullish sentiment. CoinGlass data on the OI-Weighted Funding Rate show that fewer traders have placed bets on the Aave price to drop.

On Wednesday, the metric reversed and turned positive by 0.0070%, indicating that longs are supporting shorts. The Aave price usually surges when fund rates turn positive. On the other hand, several cryptocurrency analysts are recording a bullish breakout. The sell-side’s liquidity has been depleted, according to Bullish Banter, which may bring Aave’s price into the $190-$205 supply range.

$AAVE

Sellside liquidity has been taken ✅

Market just printed a clean MSS and reacted from a bullish FVG

If price continues to respect this zone, a move back toward the $190–$205 supply area is very much on the table pic.twitter.com/ljHPIw3dzk

— BullishBanter (@bullishbanter01) January 7, 2026

AAVE Targets $174 Breakout as Bullish Momentum Builds

Since early October 2025, Aave has been in a gradual decline, currently trading at approximately $170. The bulls, however, formed a strong support level at around $145, which halted the downward movement. The token is currently in a short-term bearish move, supported by the 50-day SMA, which is above the price at $174.

The RSI stands at 52.44 (marginally above the neutral level), indicating a push-pull between bulls and bears. Nonetheless, it still has growth potential with the token remaining above the 50-level. Note that a bullish MACD crossover will further amplify bullish sentiment. This is evident when the MACD crosses above the orange signal line, indicating a bullish move. Traders may run behind the token, as AAVE targets $174 breakout.

In the near term, Aave’s price still remains bearish. The positive momentum indicators, however, suggest a potential relief rally. If the bulls gain momentum and break out above the falling channel, they could ignite a short-term rally in the market. The major resistance areas to watch are $174-$229, and the immediate support zones are $162-$145.

The traders are recommended to be careful because AAVE is currently within a bearish consolidation zone, and there is a potential for false breakouts. Before entering the market, traders are advised to closely monitor the RSI trend to determine whether the market is tired of the trend.

Taking a long-term outlook, AAVE is targeting a breakout above $174, which could push the token to the nearest resistance at $229. Thus, failure to hold above the $174 zone would in turn result in further downside to $162.