Aave remained within a tight range on Saturday, but a combination of strong technicals and rising deposits means it could recover quickly.
Aave (AAVE), originally known as ETHLend until September 2020, was trading at $353 at last check on Saturday. It remains 370% above the 2024 low.
Show data that the total value locked in its network rose to a record high of 6.12 million ETH, or $5.12 billion. Another figure of TokenTerminal shows that the ecosystem’s net input has reached a record high of $36 billion. That’s higher than the $10 billion in deposits it had in the same period last year.
This growth has made Aave a highly profitable player in the crypto industry. Totally, after all reimbursements jumped to more than $474 million in the past twelve months.
Most importantly, performance has been remarkable since competition from credit protocols such as Morpho, Spark, Compound, Venus and Save increases.
Aave is now working on its V4 project, which will be its largest upgrade ever. According to the proposal, V4 will combine a new architecture that improves modularity and reduces governance overhead. It will also integrate with GHO, the Aave stablecoin, with over $146 million in assets. The upgrade will be launched in the second half of the year.
Meanwhile, Nansen data shows Aave tokens leaving centralized exchanges, a bullish sign for the coin. The total number of tokens on exchanges has fallen by 2.43% to 5.3 million over the past seven days. Only 33% of all Aave tokens are exchanged, meaning many holders have a long-term horizon.
Aave could rise to $500
Aave has bullish technicals. The chart above shows that the token hit a low of $71.41 in 2024 and has now risen above $300.
Aave has remained above its 50-day moving average, providing important support.
Most importantly, the coin forms a bullish pennant chart pattern consisting of a long vertical line and a symmetrical triangle. This triangle is now approaching the confluence level. This often leads to a strong outbreak.
Therefore, if this happens, the initial target for the Aave token will be last year’s high of $400. A break above that level will indicate more gains, possibly at the psychological $500 point.
The bullish view becomes invalid if the coin falls below the 50-day moving average.
Founded by Finnish entrepreneur Stani Kulechov in 2017, Aave is used for governance, staking and other protocol-related functions.
