AAVE price staged a sharp intraday rebound from the $240 level amid whale accumulation, but fading momentum indicators suggest the recovery may face headwinds unless key support holds. Aave (AAVE) price saw a strong rebound today, bouncing off the key $240 support level after a sharp drop from $264 yesterday. The move appears to be driven by whale activity, with on-chain activity suggesting that large holders are buying the dip in size. According to data from Lookonchain, two major whale wallets accumulated a combined 29,739 AAVE — worth approximately $7.5 million — within the past 14 hours. One of them borrowed $5 million in USD Coin (USDC) from the Aave protocol to purchase 19,608 AAVE, bringing his total holdings to 280,673 AAVE. The other whale borrowed $2.5 million in GHO to acquire 10,131 AAVE none hours ago, bringing its total holdings to 120,513 AAVE. While whale buying activity is a bullish sign, technical indicators are showing signs of weakness. You might also like: Pudgy Penguins launches music label as PENGU price eyes a breakout Looking at the daily chart, AAVE price is now testing a key support zone around $248 – $250, which coincides with the EMA 20. Source: TradingView Despite the broader bullish structure with higher highs and higher lows since April, momentum indicators are showing signs of weakness. The MACD has crossed bearishly with a widening negative histogram, and the RSI has turned down from overbought conditions, now hovering just above 50, suggesting that bullish momentum is fading though not fully broken. A close below $248 could trigger further downside, with potential targets at $235 and $220, both of which served as previous support and consolidation zones. However, if the current support holds, bulls may attempt to reclaim higher levels, with major resistance around $280. The medium-term trend remains bullish, but the current test of support will likely determine whether this is a healthy pullback or the start of a deeper correction. You might also like: AAVE price slides 15% but buyers scoop the dip amid tokenized yield market boom