- AAVE broke the descending trendline, reclaiming structure above $284.66 with bulls targeting $295–$300 if support holds.
- Fair Value Gap between $262–$272 could attract a retest of $284.66 fails, signaling potential liquidity grab.
- AAVE’s TVL hits all-time high of $44.89B, reflecting growing user activity and increased DeFi ecosystem confidence.
AAVE is gaining momentum after reclaiming key support at $284.66, now trading around $290. With TVL hitting record highs and a weekly gain of over 9%, bulls are setting sights on a breakout above the $300 mark.
Breakout Confirmed, AAVE Retests Key Support
As per analysis by Bullish Banter on X AAVE price broke a descending trendline and surged past the key resistance zone at $284.66. Currently hovering around $285.65, AAVE is retesting this breakout level—now acting as potential support.
This zone aligns with a previous area of consolidation, making it crucial for continued bullish momentum. A successful hold here could open doors for a rally toward $295–$300.
However, traders are eyeing the Fair Value Gap (FVG) between $262–$272 as a potential rebalancing zone. This region reflects previous inefficiencies and accumulation, where liquidity may be drawn if the current support fails.
Volume analysis adds further depth. The breakout was supported by strong volume, but the recent candles show reduced buying strength. This signals caution near overhead resistance and hints at possible consolidation before the next move.
Resistance Looms Large as Bulls Approach $300
On the upside, AAVE faces multiple resistance layers between $290–$305. A significant sell wall at $305 has been tested several times in the past, resulting in rejection. The recent bearish candle near $291 confirms sellers are still defending this zone.
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If buyers can push through the heavy resistance at $305, it could open the path toward $320 and beyond. But if the rally stalls, AAVE may pull back to the $270–$275 range, where buyers previously stepped in.
Support remains strong around $248.68—the weak low and previous liquidity grab zone. If price returns here, it may signal a deeper retracement before any bullish continuation.
TVL Hits Record High, Adding Fuel to Rally
Aave’s TVL soared to a record $44.89 billion this week, according to DefiLlama, signaling rising investor confidence and growing activity within its DeFi ecosystem. This surge in locked assets points to a strong fundamental backdrop.
Momentum is building too—RSI sits above 50, showing reduced selling pressure, while Thursday’s bullish MACD crossover hints at more upside for AAVE in the near term.
