Investors Test Key $340 Threshold as AAVE's Fate Hangs in Balance

AAVE, the native token of the Aave decentralized finance (DeFi) lending protocol, has been the focus of various price predictions and technical analyses as market participants assess its potential for returns in 2025. Recent forecasts suggest a bullish bias, with key resistance levels and technical indicators shaping the outlook for the token. As Aave’s ecosystem continues to expand, total value locked (TVL) across the protocol has surpassed $65 billion, underlining the platform’s foundational strength in the DeFi space [1].

The immediate-term price trajectory for AAVE is being closely monitored, with analysts setting a short-term target range of $370–$400 for late September 2025. This projection hinges on the token breaking above the critical $340 resistance zone, which is currently acting as a key barrier to further gains. A successful breakout could potentially drive AAVE toward its $370–$400 medium-term range, representing a 15% to 20% increase from current levels. CoinCodex has offered the most optimistic forecast, targeting a short-term price of $382.08 with a high confidence level, supported by 97% bullish technical signals [1].

However, the path to these targets is not without risk. Technical indicators such as the MACD histogram show bearish momentum divergence, which could temporarily hinder upward movement despite the overall positive sentiment. A crucial element in validating the bullish case is the ability of AAVE to maintain a position above the 20-day simple moving average (SMA) at $316.85, alongside strong volume confirmation on any price movement above $340. The RSI, currently at 53.68, remains in neutral territory, suggesting there is still room for upward movement without entering overbought conditions [1].

Conversely, a bearish scenario could emerge if AAVE fails to hold above $319.93, the pivot point, or if the MACD bearish divergence intensifies. In such a scenario, the primary downside target lies in the $275–$285 support zone, with further declines potentially testing the stronger support level at $245. This would represent a 24% decline from current levels and could trigger a reevaluation of the bullish thesis. Traders are advised to monitor the $316.85 SMA 20 level as a critical defensive barrier, while stop-loss orders below $300 are recommended for risk management [1].

Longer-term forecasts also paint a cautiously optimistic picture. According to a broader price prediction table, AAVE could reach $284.16 by the end of 2025 under a bullish scenario, with a conservative average of $159.63 expected. These projections assume continued adoption of decentralized applications (dApps), DeFi platforms, and DAOs, which are central to Aave’s ecosystem growth. However, regulatory pressures and the emergence of new competitors could challenge the token’s upward trajectory, leading to a potential bearish scenario with a minimum price of $105.11 [2].

The Aave protocol, originally launched as ETHLend in November 2017, has evolved into a major DeFi player by enabling users to lend, borrow, and engage in flash loans without the need for collateral. Its native governance token, AAVE, is used to vote on protocol improvements and can be staked to earn fees and rewards. The platform’s open-source nature and robust TVL have contributed to its resilience and long-term appeal [2].

Currently, AAVE is trading at $322.60, with the market showing strong participation, particularly on Binance, where $27.1 million in spot trading volume has been recorded over the past 24 hours. This liquidity supports the potential for the predicted price movements, especially as analysts and traders position for key resistance levels. Given the mixed signals from technical indicators and the broader market dynamics, a measured accumulation strategy is recommended for investors considering entry into AAVE, with optimal positions being added during pullbacks to the $315–$320 support zone [1].

AAVE’s performance in the coming weeks and months will be closely watched by both traders and analysts as it navigates key resistance and support levels. While the bullish case remains intact, the token’s ability to confirm these projections through sustained volume and price action above $340 will be critical to realizing the full extent of the forecast. Investors are advised to stay informed and adjust their strategies as new data emerges in the evolving crypto landscape.

Source:

[1] AAVE Price Prediction: $370-$400 Target by September 2025 as Bulls Eye Key Resistance Breakout - Blockchain.News (https://blockchain.news/news/20250831-price-prediction-target-aave-370-400-by-september-2025-as)

[2] Aave (AAVE) Price Prediction: 2025, 2026, 2027 - 2030 (https://coinpedia.org/price-prediction/aave-price-prediction/)