The Aave Governance Token The world’s largest decentralized lending protocol, advanced 2.5% Tuesday afternoon above $230, recovering from an overnight selloff.
The token broke through key resistance levels, confirming a double bottom support zone between $220 and $221.13 and triggering a reversal as volume surged nearly 90% above daily averages, according to CoinDesk Research’s analytical model. The break above $224.50 signaled renewed buying interest, limited by institutional accumulation in the final minutes of trading.
The move came as the broader crypto market rallied, as a sell-off in gold and silver signaled renewed appetite for risk assets.
Aave also unveiled a partnership with Maple Finance (SYRUP) on Tuesday to incorporate institutional-grade assets as new forms of collateral. The integration will begin with syrupUSDT, followed by syrupUSDC (products backed by Maple’s managed yield strategies) which will be used to borrow on Aave’s lending markets, starting with Plasma and its core markets.
The collaboration aims to bring together institutional capital and DeFi liquidity. Managing billions in on-chain loan volume, Maple attracts allocators and borrowers looking for consistent performance. Aave, with more than $3.2 trillion in lifetime deposits since launching in 2020, offers the depth of liquidity to absorb that demand.
For users, this means higher quality collateral and more stable demand for loans. For the protocol, it could support Aave’s variable rate model through a broader base of non-volatile and solvent assets. In a volatile macro environment, the move signals a shift toward more predictable and capital-efficient lending mechanisms in DeFi.
Technical analysis
Key technical levels indicate a possible reversal for AAVE, CoinDesk Research’s analysis model suggested.
- Support/Resistance: Double bottom support remains in the $220.00-$221.13 area.
- Volume Analysis: Massive 87% surge above the daily average during the crisis followed by concentrated accumulation.
- Chart Patterns: Downtrend with lower highs reversed by double bottom formation and decisive break above $224.50 resistance confirms reversal potential.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI Policy.
