AAVE has once again captured the attention of crypto traders and DeFi enthusiasts with a striking 3.8% surge in the last 24 hours, extending its weekly gains to an impressive 25%. The token’s latest rally saw it smash through a critical resistance level at $311.50, backed by trading volume that far exceeded daily averages—a strong signal that bullish momentum could persist.
The breakout comes amid a wave of optimism in the decentralized finance sector, fueled in part by regulatory developments. On Monday, the U.S. Securities and Exchange Commission hosted a roundtable discussion with industry leaders, where SEC Chair Atkins hinted at potential regulatory exemptions for DeFi projects. While concrete policy changes remain uncertain, the mere suggestion of a more accommodating stance has injected fresh confidence into the market. Analysts point to this as a key driver behind AAVE’s recent performance, alongside the platform’s growing adoption and robust fundamentals.
Some market watchers are even eyeing ambitious long-term targets, with a handful of forecasts suggesting AAVE could eventually reach $1,000 per token. However, seasoned traders caution against over-enthusiasm, noting that while the project’s trajectory is promising, the crypto market’s inherent volatility demands a measured approach.
### A Closer Look at the Charts
The technical picture reinforces the bullish narrative. AAVE established a solid support zone between $302.35 and $302.52 before catapulting past resistance at $311.50 during the 12:00 UTC trading session. The move was accompanied by a staggering 179,461 units traded—a 140% spike above the 24-hour average—underscoring strong buyer conviction.
The day’s price action was anything but calm, with a 6.73% swing highlighting heightened volatility. After an initial surge, AAVE entered a brief consolidation phase between $305 and $310 before reigniting its upward momentum. A sharp selloff at 13:30 UTC tested the token’s resilience, but buyers quickly stepped in near the $312 level, which aligns with a 38.2% Fibonacci retracement of the earlier rally. By the session’s close, trading volume tapered off as prices stabilized between $312.00 and $312.60, setting the stage for the next decisive move.
For now, all eyes remain on whether AAVE can sustain its breakout or if profit-taking will trigger a pullback. Either way, the token’s ability to command such strong volume and hold key support levels suggests it’s far from done making waves in the DeFi space.
*Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.*
