- AAVE rebounds above $196 amid sustained DeFi demand.
- $1 trillion in all-time loans highlights platform resilience.
- Positive funding rates and whale activity suggest potential recovery.
- Critical support at $179–$196 will dictate near-term price action.
Aave Price Shows Signs of Recovery
Aave (AAVE) is trading above $196 on Wednesday, rebounding from a recent market dip. The DeFi lending protocol continues to see robust network activity despite price declines, with all-time loans approaching the $1 trillion mark. This milestone underscores Aave’s resilience and sustained user demand, reflecting the platform’s significance in the decentralized finance ecosystem.
$1 Trillion in All-Time Loans Highlights Network Strength
Aave recently announced via its official X account that the protocol is close to reaching $1 trillion in all-time loans. This achievement emphasizes strong network engagement and growing adoption in DeFi. The Horizon Real World Asset (RWA) market has also surpassed $520 million in deposits, marking it as the fastest-growing segment for RWA-backed loans. Rising institutional interest points to expanding real-world applications of Aave’s platform, further strengthening its long-term outlook.
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On-Chain and Derivatives Data Suggest Bullish Momentum
CryptoQuant and Coinglass data indicate a positive recovery bias for AAVE. Whale activity is increasing, buy dominance is improving, and funding rates have flipped to a positive 0.0089%, signaling more traders betting on price gains. Historically, such positive funding rate flips have preceded sharp Aave price rallies, hinting at potential upside in the near term.
Key Support Levels to Watch
After facing rejection at the 78.6% Fibonacci retracement level of $254.35, Aave’s price fell over 22% to retest the daily support at $179.27. Currently trading around $196, this level aligns with the 50% retracement at $190.73 and the lower trendline of a falling wedge pattern, marking it as a critical support zone. If $179.27 holds, a recovery toward the 50-day EMA at $246.01 is possible. Conversely, a close below this support could extend the decline toward the weekly support at $160.51.
Also Read: BNB’s Lorentz Upgrade Ignites Momentum as Kaspa and AAVE Showcase Bullish Strength
Conclusion
Aave’s approach to $1 trillion in all-time loans and improving on-chain metrics suggest the platform remains a key player in DeFi. Traders should monitor the $179–$196 support zone, which could define whether AAVE continues its recovery or tests lower levels.
