Aave (AAVE), a leading DeFi lending platform, experienced a substantial price surge of over 22% within 24 hours, climbing to approximately $264.80. This rally coincided with a significant increase in trading volume by more than 60%, signaling strong investor interest. The primary catalyst for this bullish movement is the U.S. Senate's advancement of the GENIUS Act, a regulatory bill aimed at establishing clear guidelines for stablecoin issuance and operation, which is crucial for platforms like Aave that rely heavily on stablecoins.
Additionally, a whale investor acquired $7.45 million worth of AAVE tokens over two days, further boosting market sentiment. Technical analysis reveals that AAVE broke out of an ascending channel formed earlier in May and is trading above its 50-period Simple Moving Average, currently around $228.54, which has acted as solid support. The Relative Strength Index is near overbought levels at 68.65, suggesting potential short-term consolidation before further upward momentum. Key resistance lies between $270 and $275, with a potential psychological target at $300 if these levels are surpassed.
The Total Value Locked (TVL) in the AAVE protocol has risen to between $24 billion and $30 billion, indicating increased user engagement and trust. Historical price trends show AAVE recovering from lows near $100, surging over 130%, supported by bullish technical indicators such as MACD and RSI. Analysts project that breaking resistance around $280 could lead to a monthly close above $300, with further potential to reach $422-$443, signaling entry into price discovery territory.
Overall, regulatory clarity from the GENIUS Act, combined with strong whale activity and positive technical signals, underpin AAVE's price rally and indicate robust growing confidence in DeFi lending markets.