AAVE Price Breaks 5-Week Consolidation, Aims for $150 Target

Discover how AAVE price action challenges broader market trends with a 31% surge, breaking key resistances and forming bullish patterns. Analyze the impact of growth in the total value locked in DeFi protocols on the potential rise of AAVE to new highs.

AAVE Price: Despite the broader market correction, Aave, the native token of the decentralized finance platform Aave, has experienced a significant increase since last week. The altcoin saw a 13% increase, with its price rising from $93 to $105.1. However, as Bitcoin price stabilized above $67,000, most major altcoins, including AAVE, faced a decline in bullish momentum. This resulted in a bearish overnight star candlestick pattern forming at $114, signaling the potential for a further correction.

🔸 Defi Protocols Show Significant Increase in Total Value Locked (TVL)

Amid renewed rallying interest in the crypto market, the AAVE price managed to form a local bottom at a psychological level of $80. A positive turnaround from this support lifted the asset by 31% in two weeks to reach $105.

💬 During this rally, buyers broke the $97.5 resistance level, breaking out of a five-week accumulation phase to fuel a new rally. Despite broader market consolidation, AAVE price encountered overhead resistance at $114 and subsequently fell 3.3% today.

This dip reveals the formation of a bearish overnight star candlestick pattern, which suggests a potential retest of the $97.5 support.

In a recent analysis shared by renowned analyst ZYRE, Total Value Locked (TVL) in DeFi protocols demonstrated a robust upward movement. According to data from IntoTheBlock, TVL rose from $93.98 billion on May 20 to a staggering $108.61 billion on May 27, indicating a substantial increase in liquidity.