DeFi revival fuels AAVE’s rally: Is $400 on the cards?
The post DeFi revival fuels AAVE’s rally: Is $400 on the cards? appeared on BitcoinEthereumNews.com. Key Takeaways The combination of a strong Ethereum and demand for decentralized finance products in the market could be a positive feedback loop for Aave. Aave [AAVE] reclaimed the $300 mark during this week’s trading and was likely to reach the next milestone at $400 soon. This level was also where the DeFi token saw a correction in December 2024. On Friday, the 22nd of August, Federal Reserve Chair Jerome Powell indicated there was a possibility of rate cuts soon. This news could be good for the DeFi sector, and thereby AAVE. The stock and crypto markets reacted bullishly. Ethereum [ETH] was just 3.1% away from its all-time high. As the backbone of DeFi infrastructure, stronger ETH prices and cheaper borrowing costs could funnel more capital into Aave’s lending and staking markets. A DeFi revival looked possible in the months ahead. New highs ahead, but also a warning for AAVE holders Source: AAVE/USDT on TradingView The weekly chart of Aave showed a bullish resurgence in progress. Early 2025 saw a deep retracement that reached below the 78.6% level, but the recovery since then has been encouraging. The OBV made a new high in recent months compared to late 2024. This signaled increased buying pressure in 2025. Meanwhile, the MACD was slowly climbing higher, but was not overextended and didn’t exhibit a bearish divergence yet. The $417 and $527 resistance levels from 2021 were the next key targets to watch out for. The Fibonacci extension levels also plotted potential take-profit zones. Profit-taking warning lights Source: Glassnode The risk of selling pressure was evident, as 97.4% of AAVE supply sat in profit at press time. This was a higher figure than at any point over the past 12 months, including December 2024. Source: Glassnode If a correction unfolds, it could be halted…
The post DeFi revival fuels AAVE’s rally: Is $400 on the cards? appeared on BitcoinEthereumNews.com.
Key Takeaways The combination of a strong Ethereum and demand for decentralized finance products in the market could be a positive feedback loop for Aave. Aave [AAVE] reclaimed the $300 mark during this week’s trading and was likely to reach the next milestone at $400 soon. This level was also where the DeFi token saw a correction in December 2024. On Friday, the 22nd of August, Federal Reserve Chair Jerome Powell indicated there was a possibility of rate cuts soon. This news could be good for the DeFi sector, and thereby AAVE. The stock and crypto markets reacted bullishly. Ethereum [ETH] was just 3.1% away from its all-time high. As the backbone of DeFi infrastructure, stronger ETH prices and cheaper borrowing costs could funnel more capital into Aave’s lending and staking markets. A DeFi revival looked possible in the months ahead. New highs ahead, but also a warning for AAVE holders Source: AAVE/USDT on TradingView The weekly chart of Aave showed a bullish resurgence in progress. Early 2025 saw a deep retracement that reached below the 78.6% level, but the recovery since then has been encouraging. The OBV made a new high in recent months compared to late 2024. This signaled increased buying pressure in 2025. Meanwhile, the MACD was slowly climbing higher, but was not overextended and didn’t exhibit a bearish divergence yet. The $417 and $527 resistance levels from 2021 were the next key targets to watch out for. The Fibonacci extension levels also plotted potential take-profit zones. Profit-taking warning lights Source: Glassnode The risk of selling pressure was evident, as 97.4% of AAVE supply sat in profit at press time. This was a higher figure than at any point over the past 12 months, including December 2024. Source: Glassnode If a correction unfolds, it could be halted…
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