Aave’s governance token the world’s largest decentralized lending protocol, rose 2.5% Tuesday afternoon above $230, recovering from an overnight selloff.
The token broke through key resistance levels, confirming a double-bottom support zone between $220 and $221.13 and triggering a reversal as volume soared 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 rebounded, as a selloff in gold and silver indicated a renewed appetite for risky assets.
Aave also unveiled a partnership with Maple Finance (SYRUP) on Tuesday to integrate institutional grade assets as new forms of collateral. The integration will begin with syrupUSDT, followed by syrupUSDC – products backed by Maple’s managed yield strategies – which will be used to borrow across Aave’s lending markets, starting with its Plasma and core markets.
The collaboration aims to connect institutional capital and DeFi liquidity. Maple, which manages billions in on-chain loan volumes, brings allocators and borrowers seeking consistent yield. Aave, with over $3.2 trillion in lifetime deposits since its launch in 2020, provides the depth of liquidity needed to absorb this demand.
For users, this means better quality guarantees and more stable borrowing demand. For the protocol, it could support Aave’s floating rate model through a broader base of non-volatile and creditworthy assets. In a volatile macro environment, this move signals a shift toward more predictable and capital-efficient lending mechanisms in DeFi.
Technical analysis
Key technical levels signal a potential reversal for AAVE, CoinDesk Research’s analysis model suggests.
- Support/Resistance: Double-bottom support holds at the $220.00 to $221.13 area.
- Volume Analysis: Massive 87% increase above the daily average during the outage, followed by a concentrated buildup.
- Chart Patterns: Downtrend with lower highs reversed by double bottom formation and a decisive break above resistance at $224.50 confirms reversal potential.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial team for accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
