Aave is hovering near a key resistance level following steady gains in recent weeks, fueled by surging on-chain metrics.
At the time of writing, Aave is trading at $329 — marking a 6% increase over the past 24 hours and an 18% gain over the past month. Despite this upward momentum, the token remains nearly 50% below its all-time high of $661 reached in 2021. The recent rally has been driven by growing activity on the platform.
Data from DeFiLlama shows that Aave’s total value locked (TVL) has surpassed $30 billion for the first time, a 57% increase from around $19 billion at the start of the year. Revenue is also on the rise, with monthly fees jumping from $30 million in April to $40 million in May, and $48 million in June. As of July 16, the protocol has generated more than $1.4 billion in total fees.
Renewed interest in Aave can largely be attributed to a series of key announcements and developments over the past few weeks.
On June 30, during the Ethereum Community Conference, Aave founder Stani Kulechov unveiled the upcoming Aave V4 upgrade. The new version is set to introduce several major enhancements, including a unified liquidity layer, cross-chain lending capabilities, and dynamic risk management tools. It will also offer deeper integration with GHO, Aave’s native stablecoin. Analysts believe that if adoption accelerates, these improvements could help propel AAVE’s price above $400.
The Aave ecosystem has also undergone significant structural updates. In April, Aave Labs revised its “Aavenomics” framework and launched a token buyback initiative aimed at improving supply dynamics and supporting long-term value. In May, the protocol announced support for Uniswap V4 LP tokens as collateral, enabling DeFi users to borrow against their liquidity positions.
From a technical standpoint, AAVE is holding above key moving averages. The 10-day EMA stands at $308, while the 20-day EMA is at $294. The token is currently trading near the upper boundary of its Bollinger Band, around $331 — a level that often indicates strong bullish momentum.
With a relative strength index (RSI) of 68.7, AAVE is approaching overbought territory. While the MACD still signals bullishness, momentum indicators are beginning to show signs of slowing.
Should the rally lose steam, the price may consolidate around key support levels at $306 or $288. However, a decisive breakout above $330 could pave the way for a move toward $350.
Despite the potential for short-term pullbacks, AAVE’s outlook remains strong, supported by improving protocol fundamentals, a growing total value locked, and the anticipated V4 upgrade.
