AAVE Token Soars: A Potential 50% Rally Ahead
The AAVE token has experienced a remarkable surge, climbing 135% from its April low. This V-shaped recovery hints at a possible 50% rally toward its 2024 high.
On Tuesday, AAVE’s price hit $270, alongside Bitcoin and other altcoins. This boost pushed AAVE’s market cap over $4 billion. The token’s rise is linked to the growing value locked in its network,now at $25.5 billion—a 24% increase in the past month.
Active loans on AAVE reached $16.2 billion, up from $11.2 billion earlier this year. the network’s fee revenue also surged, earning over $1.52 million in 24 hours and $42 million in 30 days. This trend is expected to continue as decentralized lending gains popularity.
Community support for Aave Umbrella,a risk mitigation solution,further fueled AAVE’s price. Umbrella allows users to stake Aave aTokens for rewards, with a deficit offset mechanism to protect liquidity suppliers.
Technically, AAVE has climbed from $114.30 in April to $265. The golden cross pattern and V-shaped recovery on the daily chart signal sustained bullish momentum. Key indicators like the Relative Strength Index and Stochastic are trending higher, reinforcing this outlook.
With these factors in play, AAVE’s bullish run is likely to continue, with the next target at $400—a 50% increase from current levels.
