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.