AAVE has surged to $145.09 following a decisive breakout from the long-standing $130-$140 resistance band, with the latest rally supported by Aave V4 deposits reaching a record $806 million after climbing 30% in just one week. According to AMBCrypto analysis, this dramatic increase in liquidity generation reflects improved activity in the DeFi industry, backing the overall bullish trend on AAVE. The token shows a rounded-bottom recovery followed by a breakout from the multi-month accumulation structure, with trading volume expanding sharply during the move. The $806 million deposit surge represents a significant improvement in protocol liquidity, indicating stronger user engagement and capital inflows into the DeFi ecosystem. RSI near 80 confirms powerful momentum, though it also raises the risk of a short-term pullback. For the remaining days of August, $130-$135 becomes the key breakout-retest zone, with bulls holding this area potentially extending AAVE toward $160-$180, while the larger $200-$210 resistance zone comes into view if momentum accelerates.
Futures positioning added significant support as 90-day Taker CVD was in a buyer-dominated position during AAVE's rally. Market buyers made more aggressive moves than sellers in the measured Futures activity, aligning closely with AAVE's rapid move from the $86.26 region toward $145.55. The buyer dominance strengthened demand conditions as the price approached a zone capable of attracting profit-taking, with Futures demand potentially crucial around the $145.55 area for clearing available sell orders. The current breakout above $130-$140 resistance has further validated this bullish Futures positioning and suggests sustained institutional interest in the protocol's expansion. A failure to sustain $130 could trigger a pullback toward $115-$120 before another attempt higher.
Aave V4 has demonstrated remarkable growth, reaching $806 million in deposits within six days of crossing $600 million, with deposits exceeding $500 million on August 25. The protocol divides capital among six listed markets with separate collateral rules, borrowing limits, and risk settings instead of placing every asset inside one common lending pool. Ethereum Core leads with $378 million (about 47% of all V4 deposits), followed by EtherFi Cash on Optimism at $257 million (giving the two markets a combined $635 million and nearly 79% of deposits). Other markets include Ethereum Global Dollar at $75 million, Ethereum Prime at $63 million, Avalanche Core at $18 million, and Ethereum Plus at $15 million. Active V4 loans have reached $206 million, with EtherFi accounting for $62 million as users deposit wrapped EtherFi staked Ether (weETH) as collateral. The EtherFi market has achieved a utilization rate of 92%, indicating high demand for borrowing against weETH collateral. Active loans crossed $216 million, with the surge reflecting sizeable capital migration to the new architecture and real borrowing demand.
The immediate concern centers on maintaining the $120-$130 support range, which would preserve the current bull trend structure and potentially allow AAVE to break out of higher resistance ranges. According to AMBCrypto analysis, the $120-$130 area has been flipped to support after serving as a supply zone since February 2026. The $120-former supply zone is now a critical short-term demand zone, with steady buying pressure expected to return and keep AAVE's uptrend going. A confirmed move through the $180.71 resistance would strengthen the broader bullish structure and bring $203.18 into focus, while a break below $120 could pave the way for a retest toward the $112 secondary support level. The bull case remains valid so long as AAVE defends the $120-$130 support, with potential targets extending to $230.43 if buying pressure remains strong beyond $203.18. Looking ahead, August could mark the start of AAVE's next major expansion phase as the trendline breaks and base structure activates.
AAVE surged from the $86.26 region and decisively cleared the long-standing $102.84 resistance during its latest expansion, with the rally taking the DeFi token's price from $87.54 to a peak of $145.09 in under five days - representing a remarkable 65.7% move. Technical readings support the strength behind the expansion, with the DMI indicator showing +DI at 46.88 against -DI at 6.32, while ADX climbed to 30.93. The MACD indicator reached 9.99 against its 3.08 signal line, with the histogram expanding in the positive zone to 6.18. The OBV was trending higher since July to showcase steady buying pressure, and the RSI's reading of 66 reflected momentum that was still bullish. With the trendline broken and the base structure activated, August could mark the start of AAVE's next major expansion phase. The current chart pattern indicates an expansion from the lower price range of around $90 to the current price range of around $140, with the price rising significantly above the previous trading structure.
