After AAVE fell 13% from the $86.5 resistance, bulls attempted to rebound from the $77 support.

Bullish move in AAVE falters at $86.5 resistance Bulls are poised for rebound from $77 support, funding rates remain positive

Aave [AAVE] bulls failed to consolidate recent bullish gains, with price rejecting resistance at $86.5, forcing a sharp retracement. After falling 13% from resistance, AAVE rose to recent support at $77.

Despite the pullback, AAVE remains bullish in the short term. This is highlighted by the fact that the Relative Strength Index (RSI) remains above the neutral 50 level, although it has moved out of overbought territory. This reiterates that strong buying pressure remains on the higher time frames.

Likewise, capital inflows remained positive with the Chaikin Fund Flow (CMF) reading at +0.15.

Based on price action and chart indicators, buyers can expect a quick price rebound with profit targets of $83 to $85. On the other hand, if the bullish defense at $77 falters, sellers can take advantage of further declines and target $70 to $72.