AAVE, the leading DeFi token, has experienced a significant price breakout, climbing more than 30% in just four days to trade above the key $300 level. This surge marks a decisive break from a three-week consolidation range, highlighted by exceptional trading volumes and technical momentum.
The token surpassed important resistance points around $311.50 and is currently facing new resistance near $320 and $332, with optimistic targets extending beyond $340, backed by strong volume and positive capital inflows as per market indicators like the Chaikin Money Flow.
Fundamentally, the recent U.S. Securities and Exchange Commission (SEC) roundtable on decentralized finance (DeFi) has injected optimism into the sector. SEC Chair Atkins hinted at exploring potential regulatory exemptions for DeFi firms, signaling a more favorable stance that could bolster long-term growth.
Technical analysis reveals that AAVE’s price action formed an ascending channel on the breakout day, with a support zone around $302 and a Fibonacci retracement suggesting strength after a minor correction. Relative Strength Index (RSI) readings indicate the token is entering overbought territory, which may prompt some short-term profit-taking, but the overall trend remains bullish.
Market experts remain cautiously optimistic about AAVE’s upward trajectory, with some forecasting ambitious price targets up to $1,000, although such estimates warrant prudence.