Aave's native token has rallied 17% from this week's low near $72, pushing price into a decisive technical zone that will determine whether the DeFi lending protocol can break a nine-month downtrend.
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AAVE rebounds 17% to test 9-month trendline as DeFi buying returns
Aave's native token has rallied 17% from this week's low near $72, pushing price into a decisive technical zone that will determine whether the DeFi lending protocol can break a nine-month downtrend.
AAVE rose to around $82 as of 08:00 UTC on June 25, recovering nearly all of the previous session's losses after heavy buying emerged around the $72-$75 support zone, according to CoinGecko data. The token now sits just below a descending trendline that has capped every rally since late 2025, with traders focused on the $85-$88 resistance band.
"The recovery follows an aggressive unwind of bearish positioning after AAVE found support at its long-term demand zone," crypto analyst Master of Crypto wrote in a June 24 post on X. "A daily close above $85-$88 could confirm the breakout, with $102 as the first target and $132 next."
The rebound coincided with short covering as spot buyers stepped in, forcing sellers to close positions and accelerating the advance through successive resistance levels. On-chain data shows fresh USDT deposits flowing into Aave's lending markets on Ethereum, increasing available liquidity across the protocol and supporting renewed borrowing activity. Open interest on AAVE derivatives has risen alongside positive funding rates, suggesting traders are building fresh long exposure rather than simply closing shorts.
Momentum indicators have strengthened alongside the price move. The daily Relative Strength Index climbed above 60 after rebounding from oversold territory earlier this month, while the MACD completed a bullish crossover and continues to expand above the zero line. On the four-hour timeframe, AAVE reclaimed its 20, 50, 100 and 200 simple moving averages, which now cluster between roughly $71 and $76.
The technical setup comes as Aave works to rebuild confidence after an April exploit at KelpDAO spilled over into the protocol, cutting deposits by roughly half to $23 billion from $44 billion, according to DefiLlama. Aave's share of the broader lending market slipped to 38 percent of deposits, down from an average of 59 percent in the year before the incident. Standard Chartered initiated coverage of AAVE on June 25 with a price target of $3,500 by 2030, arguing the damage from the liquidity crunch has largely run its course and that the token will track a projected 37-fold growth in DeFi assets.
If AAVE fails to clear the $85-$88 resistance, the token could retest support between $72 and $75. A confirmed breakout above the descending trendline would open the path toward $102 and $132, levels not seen since late 2025. The next several trading sessions will likely determine whether buyers can convert the current recovery into a sustained trend reversal.
This article is for informational purposes only and does not constitute investment advice.
