Aave (AAVE) Shows Strong Bullish Momentum, Rising Nearly 16% Over the Past Week

AAVE, one of the leading decentralized finance (DeFi) protocols, is showing strong bullish momentum, rising nearly 16% over the past week.

A massive cryptocurrency whale or institution has just executed a large-scale transaction involving Ethereum and Aave. According to data from Lookonchain, six wallets, likely controlled by the same entity, recently withdrew 15,953 ETH worth approximately $26.16 million from the centralized exchange OKX over the past few hours.

The Ethereum was then deposited into Aave, where the wallets proceeded to borrow 15.4 million USDT. That borrowed USDT was subsequently deposited back into OKX. This suggests a calculated DeFi play to leverage liquidity or yield opportunities.

Such transactions are usually followed by increased volatility and, in many cases, price action in the related asset.

AAVE Prepares To Break Out Of Multi-Year Range

From a technical perspective, AAVE is forming a structure that closely resembles a previous accumulation-to-breakout pattern observed between 2022 and 2024. During that period, the token traded in a range between $50 and $114 before experiencing a sharp rally to reach $460.

Each interaction with the $50 support level triggered rebounds in the Relative Strength Index, highlighting the presence of strong buyers at those levels.

Currently, the token’s RSI has broken out of its long-term downtrend and is showing bullish divergence, a technical indicator that signals potential upward price movement. Additionally, the MACD, which had been remaining below the zero line, is now testing it from below, an early sign that a trend reversal could be occurring.

The final key level to consider is the resistance zone at $155. A weekly candle close above this zone could be the final piece of the bullish breakout puzzle, potentially accelerating Aエイ夫's momentum significantly.

Such a move would mark a substantial shift in market sentiment and might open the door to a sustained rally.