AAVE breaks out from months-long downtrend, surging over 80% as renewed momentum and strong volume attract bullish traders.
AAVE gains institutional confidence after a whale scoops up $15M worth of tokens following a major $20.4M WBTC offload.
With AAVE trading at $266, technical indicators show strength while resistance looms near $300 and support sits at $220.
AAVE has staged a comeback, climbing over 80% since breaking out of its long-standing downtrend. After dipping to lows around $110 in April 2025, the DeFi token flipped the script with a powerful breakout in May. AAVE now trades at $266.88, up nearly 3% in the past 24 hours. This move positions the asset well above its April bottom and signals renewed investor confidence. Moreover, a major whale transaction has further fueled bullish sentiment, reinforcing the ongoing rally.
Breakout Ignites Momentum Shift
AAVE opened December 2024 near $160 and soared to $400 by early January 2025. That rally marked a strong bullish phase. However, it didn’t last. The token soon entered a sustained downtrend, facing consistent selling pressure through February, March, and April.
Source: World Of Charts
Support finally emerged in mid-April around $110-$120. That level held firm even as bears tested it multiple times. Consequently, the asset formed a solid base. In early May, AAVE broke through the descending resistance line with high volume. The breakout, confirmed by strong 12-hour candle closes, changed the short-term trend. Technical indicators flipped bullish, confirming a fresh shift in market sentiment.
Whale Action Confirms Institutional Confidence
A deep-pocketed whale just made headlines after selling 184.4 WBTC (around $20.4 million) via Wintermute OTC. Surprisingly, the same wallet immediately bought $15 million worth of AAVE at $259.90 per token. That’s a total of 57,715 tokens scooped up in one go.
Besides, this wallet has a history with AAVE. Since March 2023, it has accumulated 224,010 tokens for roughly $30.8 million. With AAVE now near $266, the whale sits on a $26.32 million unrealized gain. This signals smart money's conviction in AAVE's long-term value.
Price Outlook and Resistance Levels
AAVE’s breakout puts it midway between the April bottom and January peak. Hence, $300 now stands as a potential resistance level. If momentum continues, bulls may push toward $350 in the coming weeks. Moreover, the rising volume adds credibility to the move. Technical strength remains evident across multiple timeframes. However, a pullback toward $220 support cannot be ruled out.
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