Overview
- AAVE rallied about 17% from a low near $72 to trade around $82 as buying and short-covering pushed the token up to test a descending nine-month trendline near $85.
- Price has reclaimed the 20, 50, 100 and 200 simple moving averages and momentum indicators have improved, with daily RSI above 60 and a bullish MACD crossover.
- On-chain data show new USDT deposits into Aave’s lending markets and derivatives metrics show rising open interest and positive funding rates, which point to growing long exposure rather than only short-covering.
- Analysts say a daily close above $85–$88 would confirm a technical breakout and open upside targets near $102 and $132, while failure to clear that zone would likely send AAVE back toward $72–$75 support.
- Aave is one of DeFi’s largest lending protocols, so a sustained breakout could draw more capital into DeFi tokens and increase borrowing activity on the protocol, but higher-for-longer Fed policy and a strong U.S. dollar could limit broad risk appetite.