Aave Price Surges 10% as Total Value Locked Hits $34B – Bulls Target $420 High

Highlights:

• Aave’s price surged 10% to $296 with $729m in trading volume.
• Total value locked reached $ 34 billion, with $624m in fees.
• V4 upgrade in 2025 will enhance modularity and integrate GHO stablecoin.

The Aave price is trading at $296, a 10% surge in the last 24 hours as of 5 a.m. EST on an 81% pump in trading volume to $729 million. Its total value locked has reached a record high of $34 billion. Aave has become highly profitable, generating over $624 million in fees.

Even still, there's much more to be accomplished.

With Aave V4 on the horizon, featuring advanced risk tools, unified liquidity, and more—the next chapter is even more exciting. pic.twitter.com/2l4p0sdg82

— Aave (@aave) January 8, 2025

Despite growing competition from platforms like Morpho, Spark, and Compound, Aave is focusing on its V4 upgrade, which is scheduled for the second half of 2025 and aims to enhance modularity, reduce governance overhead, and integrate its stablecoin, GHO, with over $146 million in assets.

AAVE Statistics

• Aave price: $296
• Market Capitalization: $4.4 billion
• Trading Volume: $729 million
• Circulating Supply: 15 million
• Total Supply: 16 million

Technical Analysis – Bulls Push the Aave Price Above the Descending Channel

The AAVE/USD 4-hour chart signals a notable shift in momentum, as the price has broken out of a well-defined bearish channel. This channel, characterized by a series of lower highs and lower lows, had kept the price in a downtrend for an extended period. Currently, the price stands at $298.33, marking a 2.98% increase in the last session, which highlights the strength of the ongoing bullish reversal.

The breakout suggests that market sentiment may be shifting in favor of buyers, especially as the price has moved decisively above the key 50-period moving average, which is sitting at $297.16.

The MACD (Moving Average Convergence Divergence) is showing bullish momentum, with the MACD line crossing above the signal line and positive histogram bars appearing. This crossover into positive territory often indicates an upward shift in momentum, signaling that buyers are gaining control.

Similarly, the RSI (Relative Strength Index) is at 56.94, which is in the neutral-to-bullish range. This suggests that the price is not yet overbought, leaving room for further upward movement. The RSI also indicates improving market strength, aligning with the overall bullish breakout narrative.

Bullish Momentum Eyes on $420 Resistance

Looking ahead, the next major resistance level is at $420, which corresponds to a prior zone of selling pressure. A successful move above this level could open the door for further gains, with $350 being a potential target based on previous highs.

On the flip side, the immediate support lies near $297, which is both the 50-period moving average and the breakout level. If the price fails to hold above this level, a deeper retracement to $270, the lower boundary of the former bearish channel, could occur. This level would act as critical support, and its break could negate the bullish outlook.

The combination of the breakout above the bearish channel, the price trading above the 50-period moving average, and supportive indicators such as the MACD and RSI point to a strong likelihood of continued upward momentum. However, traders should monitor key resistance and support levels closely, as the broader trend remains susceptible to volatility. If bullish momentum holds, AAVE price could target significant upside levels in the near term, attracting further buyer interest.