AAVE's TVL sets a record of 44.89 billion USD: Will the token price break through?

Aave (AAVE) continues to maintain a bullish trend, firmly above the 290 USD mark on Friday afternoon, after recording an increase of nearly 6% over the past week. The bullish momentum becomes more evident as the Total Value Locked (TVL) sets a new record, exceeding 44 billion USD, reflecting a strong inflow of capital and growing confidence from investors. On the technical side, momentum indicators collectively support the bullish trend, reinforcing expectations that AAVE's recovery will continue.

AAVE's TVL reaches an all-time high

According to data from DefiLlama, the total value locked (TVL) on Aave has reached a record high of 44.89 billion USD on Friday, marking a new historical milestone for this protocol. This impressive figure reflects the increasing momentum in the AAVE ecosystem, as more and more investors choose to deposit and utilize assets through the platform.

AAVE's TVL Chart | Source: DefiLlamaIn the derivatives space, the Futures Volume Bubble Map from CryptoQuant – a tool measuring the average scale of AAVE orders – shows significantly higher trading volume, implying strong participation from "whales." This is seen as an additional signal reinforcing the positive outlook for AAVE in the short term.

Aave's Futures Volume Bubble Map indicator | Source: CryptoQuant## Aave price forecast: Bulls targeting 367 USD

Last week, AAVE established a significant support zone at the Fibonacci 50% level around 250.53 USD ( calculated from the April low at 114.05 USD to the August high at 387.02 USD). From this price range, the token quickly bounced back and closed above the 200-day EMA at 268.05 USD on Sunday. Entering the new week, the bullish momentum continued to strengthen as AAVE recorded an increase of about 5% as of Thursday, while maintaining support on the 200-day EMA. As of Friday afternoon, the price is stabilizing around 290 USD.

Daily AAVE/USDT Chart | Source: TradingViewIf the bullish trend holds, AAVE is likely to extend its bounce back and challenge the key resistance level at 367.11 USD. Technical signals are also supporting this scenario: the RSI index on the daily frame has surpassed the neutral level of 50, reflecting weakened selling pressure; while the MACD just recorded a bullish crossover on Thursday, signaling a buy and suggesting the potential for a new upward movement.

However, in the event that the market experiences a correction, the 200-day EMA at 268.05 USD will continue to be an important support level to watch.

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