AAVE Price Testing Support After 95% Monthly Gains

I am observing that AAVE is currently trading at $253.26, which represents a decline of 1.39%. This drop occurs as buyers attempt to hold onto critical support levels after a substantial monthly rally of 95%, primarily fueled by advancements in the Aave V4 development.

The recent surge in AAVE's price highlights strong bullish momentum driven by technological progress within the Aave ecosystem, particularly with V4. Nevertheless, the current retreat suggests some profit-taking or short-term consolidation as traders evaluate the sustainability of the rally. The key support zone around the current levels will be crucial for maintaining bullish control or potentially signaling a reversal if broken.

Overall, this situation illustrates healthy price action where investors are testing support after a significant uptrend, reflecting both confidence in the project's development updates and cautious adjustment from recent gains. Maintaining these support levels could reinforce bullish continuation, while a significant break might invite further downward correction.