Aave’s control sign the world’s largest decentralized lending protocol, rose 2.5% to over $230 on Tuesday afternoon, recovering from an overnight selloff.
Pushing through key resistance levels, the token confirmed a double-bottom support zone between $220 and $221.13, triggering a reversal as volume surged nearly 90% above daily averages, according to CoinDesk Research’s analysis model. The break above $224.50 signaled renewed buying interest, capped by institutional accumulation in the final minutes of trading.
The move came as the broader crypto market rallied as a selloff in gold and silver pointed to renewed appetite for risk assets.
Aave also unveiled a partnership with Maple Finance (SYRUP) on Tuesday to embed institutional-grade assets as new forms of collateral. The integration starts with sirupUSDT, followed by sirupUSDC – products supported by Maple’s managed return strategies – to be used for loans across Aave’s lending markets, starting with its plasma and core markets.
The collaboration aims to build a bridge between institutional capital and DeFi liquidity. Maple, which manages billions in onchain lending volume, brings allocators and borrowers seeking consistent returns. Aave, with over USD 3.2 trillion in lifetime deposits since launch in 2020, offers the liquidity depth to absorb this demand.
For users, this means higher quality security and more stable loan demand. For the protocol, it could support Aave’s variable rate model through a broader base of non-volatile, creditworthy assets. In a volatile macro environment, the move signals a shift towards more predictable, capital-efficient lending mechanisms in DeFi.
Technical analysis
Key technical levels signal a potential reversal for AAVE, CoinDesk Research’s analysis model suggested.
- Support/Resistance: Double bottom support holds at $220.00-$221.13 zone.
- Volume Analysis: Massive 87% rise above daily average during collapse followed by concentrated accumulation.
- Chart Patterns: Downtrend with lower highs reversed by double bottom formation and decisive breakout above $224.50 resistance confirms reversal potential.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
