Traders are divided on the future price direction of Aave (AAVE), with some predicting a breakout towards $600 and others anticipating a drop to $230. This split reflects conflicting perspectives regarding market trends. While recent consolidations near the mid-range suggest potential for an upward movement, historical patterns like an M-pattern on the daily chart hint at short-term pullback. 8:30 PM EST August 20, 2025 AAVE’s current price of around $290 represents a slight gain over the past 24 hours and remains close to its support level near $278. 10% losses over the last week point towards a potential shift away from accumulation. Aave stands out as a prominent player in DeFi, with its Total Value Locked (TVL) at over $36 billion, representing nearly half of the entire DeFi lending market. Last week, AAVE hit an all-time high of $40 billion. 10% losses last week indicate potential for accumulation. On a long-term basis, Aave has moved through several phases, with a recent surge followed by a subsequent decline before returning to sideways movement between $50 and $120. Crypto analyst Ali Martinez’s analysis suggests that the M-shaped pattern on the daily chart may lead to a short-term top, with potential price drops to $230. Short-term indicators like the 20-day SMA ($288) and 50-day SMA ($294) indicate indecision, while the Balance of Power (BBP) at -19.09 suggests sellers still dominate. However, smaller red bars suggest weakening selling pressure, suggesting a potential shift towards recovery. A break above resistance levels could push AAVE into new price territory.