Aave crypto price rejects from resistance at $390, but will support at $227 hold? 

Aave crypto price has sharply rejected $390 resistance, a level untouched this year. Aave now approaches $227 support, a key confluence zone that could maintain the bullish trend if defended.

Aave (AAVE) has faced a steep correction after failing to break through the $390 high-time frame resistance. The loss of the value area accelerated the downside move, but the price is now nearing a critical support cluster at $227. This level combines the 0.618 Fibonacci retracement with the high-low region of the current bullish structure, making it vital for continuation.

Aave price technical points:

• Rejection at $390: Aave failed to break its yearly resistance, triggering a corrective move.
• Critical Support at $227: Confluence of 0.618 Fibonacci and high-low structural support.
• Volume Confirmation Needed: Bullish demand must return with strong inflows to sustain the uptrend.

The sharp rejection at $390 marked the end of Aave’s latest attempt to break its high-time frame ceiling. This resistance has been untested since the beginning of the year, making it a significant barrier for continuation. Following the rejection, the loss of the value area intensified the downside move, sending the price toward the $227 support zone.

This support is highly significant. The 0.618 Fibonacci retracement aligns with the current higher-low projection, giving $227 the technical weight required to serve as a foundation for the next rally. If Aave defends this level, the bullish market structure of consecutive higher highs and higher lows will remain intact, keeping the broader outlook favorable.

Volume remains the key to confirming any reversal from this region. The correction so far has lacked meaningful bullish inflows, but demand will need to appear in sporadic, continuous bursts to support a rotation higher. This volume behavior has characterized previous legs of the uptrend, and its return would validate the case for another higher low forming at $227.

What to expect in the coming price action

If Aave defends $227 with strong bullish volume, price action is likely to rotate higher, resuming its uptrend and retesting $390 resistance. A clean break of $390 would then open the door for higher targets. Failure to hold $227, however, would weaken the bullish structure and risk a deeper correction.