Aave Price Rebounds Above $196 After Market Drop
Aave (AAVE) price is rising above $196 on Wednesday. This comes after a recent market correction earlier this week. Despite the price drop, Aave is close to reaching $1 trillion in total loans. This shows strong activity on its network and continued demand for its DeFi services.
Aave Nears $1 Trillion in All-Time Loans
On Tuesday, Aave announced on its official X account that it is nearing $1 trillion in all-time loans. This milestone highlights the protocol’s resilience and ongoing demand in the competitive DeFi space.
Additionally, Aave’s Horizon Real World Asset (RWA) market has over $520 million in deposits. This is the fastest growing segment for RWA-backed loans. It shows increasing institutional interest and more real-world adoption of DeFi.
On-Chain and Derivatives Data Suggest Bullish Trend
- CryptoQuant data shows large whale orders and dominant buying activity in AAVE’s spot and futures markets.
- Coinglass’s OI-Weighted Funding Rate has turned positive at 0.0089%, indicating longs are paying shorts.
- Positive funding rates often lead to sharp price rallies for Aave.
Key Support Levels May Boost Aave Recovery
Aave price declined more than 22% after hitting resistance at $254.35 on October 27. It tested support near $179.27 on Tuesday. This level matches the 50% Fibonacci retracement ($190.73) and the lower trendline of a falling wedge pattern, marking a key support zone.
Currently, AAVE trades near $196. If the $179.27 support holds, price could rebound to the 50-day EMA at $246.01. The Relative Strength Index (RSI) is 37 and moving upward, showing early signs of weakening bearish pressure. For a stronger recovery, RSI needs to move above 50.
However, if AAVE closes below $179.27, it may drop further toward weekly support at $160.51.
