Aave [AAVE] Poised for Recovery as Institutional Confidence Grows

Aave [AAVE] has been the talk of the DeFi sector as institutional confidence grows, highlighted by BlockTower Capital's recent acquisition of 15

BlockTower Capital recently acquired 15,580 AAVE tokens, highlighting institutional confidence in the platform. At press time, AAVE was trading at $166.09, down 2.50%.

AAVE’s recent price correction is being closely watched to determine whether this institutional vote of confidence will translate into sustained price growth.

With over $25 billion in deposits, AAVE is solidifying its position as a DeFi leader. However, key technical and on-chain signals will ultimately determine if this momentum will push the token to new highs.

AAVE’s Resistance at $170

AAVE’s price has repeatedly retested the $170.68 resistance level, which aligns closely with its 9-day and 21-day moving averages. Notably, a bearish crossover has occurred between these moving averages, indicating a slowdown in bullish momentum.

Traders are now watching this level closely to gauge AAVE’s next directional move.

Furthermore, the Relative Strength Index (RSI) stood at 51.28 at press time, indicating a neutral trend. While AAVE is not yet in oversold territory, RSI readings closer to 60 could signal a bullish rebound.

Until then, AAVE appeared to be trading cautiously around this critical resistance, with the next few days set to confirm whether a breakout is on the horizon.

Transaction Growth Signals Adoption

On-chain activity offered further insight into AAVE’s potential. Over the past 24 hours, the network saw a 1.03% increase in transaction count, reaching 3,060 transactions.

This steady growth in activity aligns with the narrative of increasing user engagement and adoption.

Moreover, the sustained transaction count suggests confidence in AAVE’s ecosystem, even during market corrections.

As a result, the network activity provides a foundation for price recovery if technical indicators align.

Liquidations Hint at Bullish Sentiment

AAVE’s liquidation data painted an optimistic picture. At the $166.32 price level, long liquidations vastly outpaced shorts, amounting to $51.83K versus $6.11K, respectively.

This divergence highlighted that traders remained confident in AAVE’s ability to recover, despite recent bearish patterns. Consequently, such sentiment could fuel buying pressure in the near term.

AAVE’s institutional backing, combined with rising transaction volumes and bullish trader sentiment, suggested the token was poised for a recovery.

While technical indicators showed some hesitation near the $170 resistance, breaking above this level could pave the way for a stronger rally.

Hence, AAVE’s short-term outlook hinged on its ability to maintain bullish momentum and reclaim critical levels.