AAVE price has gone parabolic, rising in the last five consecutive weeks as its ecosystem continued to boom. The token is closing in on $400, its highest level since October 2021. It has jumped by over 714% from its lowest level this year, making it one of the best-performing DeFi tokens.
AAVE price analysis: can it soar 78%?
The weekly chart shows that the AAVE token has gone parabolic this year. This rebound happened after the coin found a strong bottom near the $80 support level. It struggled to move below that price several times since May 2023. In technical analysis, an asset’s breakout is usually more severe when it remains in a consolidation for so long.
AAVE price rally gained steam when it moved above the upper side of the rising channel at around $160. This rebound confirmed the bullish breakout. Since then, it has cleared several psychological levels like $200, and most recently, $350.
AAVE token has remained above the 50-week moving average, while the MACD indicator has moved above the zero line. The Relative Strength Index (RSI) has moved to the overbought level.
Therefore, after going vertical, chances are that the AAVE token will consolidate soon as it forms a bullish flag or a pennant pattern. These patterns are some of the most bullish signs in the market. If either of them forms, then the token will have a bullish breakout as bulls target the all-time high of $704, which is about 80% above the current level.
On the flip side, the bullish view will become invalid if the AAVE price drops below the psychological point at $300.
AAVE is seeing numerous catalysts
AAVE has strong fundamentals that may push its price higher in the next few months. The amount of assets in the ecosystem has jumped to a record high of over $23 billion, much higher than where it started the year at $6.3 billion. It has grown in ETH terms from 2.9 million ETH to over 5.7 million today.
Further, AAVE has seen strong developer activity. Data by DeFi Llama shows that it had 158 weekly commits and 259 monthly commits. This is a sign that developers are actively building in the network.
AAVE’s fees collected have also continued rising as the network did well. Data by TokenTerminal shows that it has collected over $426 million in fees his year, making it the fourth-most profitable DeFi network after Lido, Uniswap, and Jito.
Most recently, Donald Trump’s World Liberty Finance has announced a deal with AAVE and even acquired tokens worth over 2.4 million. This is a positive sign since Trump will have a say in how crypto is regulated during his administration.
