AAVE Surges 22% on Whale Inflows Institutional Interest

AAVE, a prominent decentralized finance (DeFi) protocol, has surged by over 22%, leading the market with significant gains. This price action is backed by a spike in buying volume, which has increased by over 50%. The token, which had been consolidating within a narrow range, has attracted substantial interest, pushing its price closer to a crucial threshold. This threshold not only has the potential to form a new all-time high (ATH) but could also mark a four-digit figure.

The recent surge in AAVE's price is driven by several factors, including whale inflows and institutional interest. The bullish sentiment in the market, coupled with the backing received for AAVE as the core of DeFi’s infrastructure, has contributed to this momentum. As a result, AAVE has recorded a new Total Value Locked (TVL) of over $24 billion, setting a new all-time high for the platform.

The DeFi lending protocol is displaying massive bullish signals, indicating a promising future for decentralized finance. AAVE, which has been trading strongly since its bounce from the lows close to $100, is poised for a high-timeframe (HTF) bullish breakout. This breakout could push the token beyond the final resistance below the ATH, suggesting a potential for further gains.

Historical data of AAVE shows that the price broke down from a rising wedge after completing a parabolic recovery curve. Despite a drop in volume, the price rebounded from local lows and surged by over 130%. Technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have turned bullish, with a bullish crossover and a u-shaped recovery. If AAVE manages to secure the resistance at $280, a monthly close above $300 could be imminent.

From a broader perspective, AAVE's price is undergoing a V-shaped, steep recovery. This recovery is expected to reach the neckline between $422 and $443. A breakout above this range is believed to initiate a fresh upswing, potentially pushing the price into a discovery phase and marking a new ATH, possibly close to $1000.