Crypto Quill

Aave is making waves again. The decentralized finance (DeFi) token has surged 25% in the last 24 hours, catching the attention of traders as Bitcoin inches closer to $91,000. At its current price of $218, Aave’s market cap has climbed to $3.29 billion, leaving investors wondering: Can it hit $300 soon?

AAVE’s Strong Recovery Signals More Upside

Aave’s price action on the weekly chart looks promising. Bulls are showing strength, repeatedly defending the 50-week Exponential Moving Average (EMA). The token is also holding firm at the 61.80% Fibonacci retracement level, with strong buying interest at the 50% level, around $165.

The technical setup suggests that AAVE is well-positioned for a breakout.

• The 50, 100, and 200-week EMAs remain in a bullish formation.
• Despite a short-term pullback, price action hints at a morning star pattern, a sign of a potential trend reversal.
• If momentum builds, AAVE could set a new 52-week high, with $321 as the next major resistance level.

The MACD indicator is still bearish, with red histogram bars showing mild selling pressure. However, if AAVE sustains above the 61.80% Fibonacci level, the bearish trend could flip quickly.

Can AAVE Hit $400 Before the Next Pullback?

Looking ahead, AAVE faces multiple price levels that could determine its next big move.

• The immediate hurdle: $321, marked by the 78.60% Fibonacci level.
• A break above $321 could open the door for a rally to $400, a key psychological level.
• If momentum remains strong, AAVE could eventually test $528, followed by a shot at $1,000 in a full-blown bull market.

But there’s a catch. The token has support levels at $165 and $150, and a drop below these could trigger a deeper correction.

Whale Moves Suggest Confidence in AAVE’s Future

Big-money investors are making their move. OnchainLens data reveals that an early PEPE whale has recently acquired 20,511 AAVE tokens at an average price of $193. This transaction, worth around $4 million, shows growing confidence among large holders.

What’s more, this same whale holds 2.88 trillion PEPE tokens, valued at roughly $20 million. This indicates a history of making strategic bets in the crypto space.

One large purchase doesn’t guarantee a rally, but it signals that some investors see AAVE as undervalued at current levels.

What’s Next for AAVE?

Short-term, AAVE needs to maintain momentum above $218 to keep bulls in control. If buying pressure intensifies, a breakout toward $300 could happen sooner rather than later. However, traders should watch for profit-taking near resistance levels.

For now, all eyes are on Bitcoin’s next move. If BTC pushes past $91,000, DeFi tokens like AAVE could ride the wave higher.