AAVE Price Tests 200-Week EMA as Burn Talk Meets Rising Exchange Supply

AAVE price is recovering on the weekly chart, but the rally is running into a much bigger test. The token has flipped both the 20-week and 50-week EMAs, and the 200-week EMA band is now being tested.

AAVE Price Reaches Its Biggest Weekly Test

The recovery has pushed AAVE above its 20-week and 50-week EMA levels with strength. Now, the 200-week EMA band stands in the way.

If that resistance breaks, the constraints around the current recovery could ease. The chart levels point toward $240 and $340 as potential targets over the coming months, with the final quarter of the year approaching. That’s the bullish setup. The supply data is less convincing.

AAVE Burn Talk Meets Rising Exchange Supply

A burn is under consideration, according to comments made on September 29. However, no proposal, burn ratio or timeline has been published.

Meanwhile, the live buyback is estimated at around 292 AAVE per day into the DAO treasury, based on June estimates. Exchange balances are moving in the opposite direction.

Exchange AAVE Supply Hits A 60-Day High

AAVE held on exchanges increased roughly 12% between September 16 and September 28, adding around 146,000 coins. That’s approximately 12,000 AAVE per day.

Exchange supply subsequently reached a 60-day high, even as AAVE price climbed around 24% over the same period. That doesn’t mean those coins were sold. Still, the numbers don’t show an obvious supply squeeze yet.

If a burn eventually happens, the starting point is notable: exchange balances are already near a 60-day high. For now, AAVE price has the 200-week EMA to clear while the supply picture remains mixed.