The governance token of Aave , representing the leading decentralized lending protocol, increased by 2.5% on Tuesday afternoon, surpassing the $230 mark after recovering from a dip overnight.
This token successfully broke through critical resistance levels, confirming a double-bottom support zone between $220 and $221.13, thus triggering a reversal as trading volume surged nearly 90% above daily averages, according to CoinDesk Research’s analytics model. The breakout past $224.50 indicated renewed interest from buyers, bolstered by institutional accumulation in the closing minutes of trading.
The market movement coincided with a rebound in the broader crypto sector, as a decline in gold and silver prices indicated a renewed interest in riskier assets.
Aave also announced a collaboration with Maple Finance (SYRUP) on Tuesday to introduce institutional-grade assets as new collateral types. The partnership will kick off with syrupUSDT, followed by syrupUSDC—products supported by Maple’s managed yield strategies—to facilitate borrowing across Aave’s lending markets, starting with its Plasma and core markets.
The alliance aims to connect institutional capital with DeFi liquidity. Maple, which oversees billions in on-chain lending volume, connects allocators and borrowers seeking reliable yield. Aave, with over $3.2 trillion in lifetime deposits since its inception in 2020, possesses the liquidity capacity to meet this demand.
This initiative translates to improved collateral quality and steadier borrowing demand for users. For the protocol, it may enhance Aave’s variable-rate model by broadening the base of stable, creditworthy assets. In a fluctuating macroeconomic landscape, this shift signals a move towards more predictable and capital-efficient lending practices within DeFi.
Technical analysis
Critical technical indicators suggest a potential reversal for AAVE, according to CoinDesk Research’s analysis model.
- Support/Resistance: Double-bottom support maintains between the $220.00-$221.13 range.
- Volume Analysis: Significant 87% increase above daily average during breakdown, followed by concentrated accumulation.
- Chart Patterns: A downtrend with lower highs has been reversed by the double-bottom pattern and a decisive breakout above the $224.50 resistance signals reversal potential.
Disclaimer: Certain sections of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For further details, see CoinDesk’s complete AI Policy.
