Aave reclaimed $300 and targets $400 with DeFi momentum and stronger Ethereum support.
Technical indicators show rising buying pressure and bullish momentum without bearish signals.
Profit-taking risks remain high, with $300 and $280 as key support levels.
Aave — AAVE has reclaimed the $300 level, signaling fresh strength for one of DeFi’s most important tokens. The move raised expectations of a push toward $400, a price level that triggered a correction late last year. Traders now weigh bullish momentum against looming risks of profit-taking. With broader market conditions aligning, AAVE finds itself at the center of renewed excitement in decentralized finance.
https://twitter.com/_CryptoYoda/status/1959601585883128146 Why AAVE Looks Strong Right Now
Federal Reserve Chair Jerome Powell hinted at possible rate cuts on August 22. That single signal shifted the mood across both stock and crypto markets. Investors welcomed the prospect of cheaper borrowing, which often fuels risk assets like digital tokens. Ethereum surged closer to its all-time high, rising within 3.1% of the peak. Stronger ETH prices support DeFi activity, and that tailwind flows directly into Aave.
As a backbone of lending and staking in DeFi, Aave thrives when liquidity pours into Ethereum. More capital searching for yield strengthens lending markets, staking pools, and borrowing demand. The revival of DeFi, therefore, breathes life into AAVE’s price outlook. Technical signals echo that optimism. The weekly chart shows a bullish resurgence after a deep retracement earlier this year. Price action fell below the 78.6% level in early 2025 but staged an impressive rebound.
The Shadow of Profit-Taking
While the rally excites bulls, a cautionary note lingers. Nearly 97.4% of AAVE supply sits in profit today. That percentage stands higher than any point in the past year, even December 2024. With so many holders sitting comfortably, the temptation to lock in gains could spark selling. Support levels provide comfort if a correction unfolds. The $300 round number has historically acted as a psychological floor. Just beneath, the $280 range also carries weight, given the large supply acquired at that level.
Both price zones appear sturdy on the Cost Basis Distribution Heatmap, reinforcing their importance. Northward, resistance remains thinner but noticeable. The $390 price region may pose a challenge, as traders who bought there could exit positions. Breaking that barrier with volume would signal strong intent from buyers. Beyond that, clear skies point toward the higher resistance zones.
For now, the balance between greed and caution defines AAVE’s next moves. The rally resembles a river swelling after heavy rains, but floodwaters can also retreat suddenly. Traders should prepare for both outcomes, celebrating the momentum but respecting the risks. Aave reclaimed $300 with confidence and eyes $400 as DeFi strength returns. Ethereum’s surge and possible rate cuts create a favorable backdrop for lending activity. Technical indicators highlight fresh momentum and stronger buyer conviction.
