Rebounds 6%, Breaks Resistance as DeFi Market Hits Record Size

Aave AAVE$291.92, 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$122,763.94 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.