AAVE Price Surges to New Highs Following Aptos Deployment and All-Time High TVL

Key Takeaways

• AAVE surged to the highest price since February.
• The team announced the Aave v3 deployment on Aptos.
• How long will the AAVE price increase continue?

AAVE is back in the spotlight after a relatively quiet start to the year.

On May 19, the AAVE team announced positive news that Aave V3 will deploy on Aptos, marking a new era for cross-chain crypto lending.

AAVE’s Total Value Locked (TVL) reached an all-time high of over $24 billion, indicating increased interest in Decentralized Finance (DeFi).

The AAVE price is leading the crypto market on the back of the positive news, so let’s examine the charts and see how long the rally will continue.

AAVE Price Surges

The weekly time frame analysis shows that the price of AAVE has increased since April.

At the time, it bounced in the middle of a long-term ascending parallel channel.

The AAVE rally became parabolic once it broke out from the channel and a descending resistance trend line.

AAVE is in the process of creating its seventh successive bullish weekly candlestick.

The AAVE price is approaching the 0.5 Fibonacci retracement resistance of $378. The rejection from this level created the previous descending resistance trend line.

If AAVE exceeds this level, it could reach the next resistance at $470.

Technical indicators show bullish signs. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.

Both have just moved above their bullish thresholds (black circle). The RSI crossed 50 while the MACD made a bullish cross and is positive.

So, the weekly time frame readings point to a bullish long-term AAVE trend.

Will AAVE Break Out?

The daily time frame shows that the AAVE price increase since April is parabolic.

AAVE trades inside the $265 resistance area, a breakout above which can further accelerate the rally.

The wave count gives a bullish AAVE prediction, suggesting the price is in the fifth and final wave of an upward movement (green).

Technical indicators align with this bullish prediction, since the RSI and MACD are increasing, and neither has generated any bearish divergence.

Thus, the daily time frame predicts a successful breakout from the $265 region, taking AAVE to $335.

Bullish Trend Ahead

The AAVE price has surged by over 130% since April, creating a parabolic rally.

After a 40% rise this week, the AAVE price today attempts to break out from a critical resistance at $265.

The price action and wave count suggest the breakout will be successful, predicting a high of at least $340.