AAVE Breaks Resistance as DeFi Market Hits Record $219B Size

Aave (AAVE), the native token of the largest decentralized finance (DeFi) lending protocol, strongly rebounded from last week's lows breaking through key resistance levels on Friday afternoon.

The token gained another 2% over the past 24 hours and is up 6% this week. It has established support at the $284-$285 levels, while it's currently consolidating around $290.

The move occurred as the broader crypto market rallied, with gains across the board and bitcoin (BTC) breaking above $122,000, inching closer to its August record high. The broader DeFi market also accelerated, hitting a $219 billion in assets across protocols, a fresh record level, DeFiLlama data shows.

Deposits on Aave also climbed to a record $74 billion, cementing its top position among DeFi protocols, per DeFiLlama data. The platform enjoyed fresh inflows due to a recent partnership with up-and-coming stablecoin-focused chain Plasma. The Plasma lending market on Aave swelled above $6 billion in less than a week.

Technical Analysis Shows Strong Momentum

Technical indicators point to upside potential despite short-term profit-taking pressure at current levels, the CoinDesk Data research model shows. However, resistance levels hold firm between $290-$294 following repeated rejections.

• Price gains 2.33% in 24-hour session.
• Trading range spans $15.17 between $279.16 and $294.33 extremes.
• Volume spikes to 143,188 units, well above 37,000 average.
• Support level confirmed at $284-$285.
• Resistance zone established between $290-$294.
• Intraday high reaches $290.37 before reversal.
• Consolidation pattern develops at current levels.