Aave (AAVE) Price Prediction: DeFi Total Lock-up Position Value Hits All-Time High, Expected to Pump Further

Aave (AAVE) continued its previous trading day's 3.45% pump today, with a Total Value Locked reaching a record 26.49 billion USD. However, as AAVE gradually approaches the psychological barrier of 300 USD, derivatives traders remain divided. From a technical perspective, as trend momentum gradually strengthens, AAVE is expected to show a bullish trend.

AAVE Total Value Locked hits an all-time high

DeFiLlama data shows that the Total Value Locked (TVL) of AAVE has reached 26.49 billion USD, setting a new record. TVL refers to the value of all tokens on the DeFi protocol, and an increase in TVL indicates that the activity on the protocol has improved.

(Source: DefiLlama)

The surge in TVL comes from the continuous growth of activities in the decentralized finance (DeFi) sector, with the current TVL reaching 116.786 billion USD.

AAVE derivatives market sentiment is mixed

CoinGlass's data shows that AAVE's open interest (OI) has grown by 14.28% in 24 hours, reaching 678.07 million USD. The growth of open interest is related to the increase in capital inflows into the derivatives market, indicating a strengthening of bullish market sentiment.

However, the weighted financing rate for open positions is 0.0013%, fluctuating near the zero line, indicating uneven sentiment among traders. Generally, bulls pay when the financing rate is positive to offset the imbalance in spot and swap prices caused by increased buying activity in the derivatives market.

Nevertheless, the short position liquidation amount in the last 24 hours was $625,580, far exceeding the long position liquidation amount of $125,160, indicating a larger scale of short position liquidations. Despite this, the long-short ratio of 0.9736 shows that there are more active short positions.

(Source: Coinglass)

AAVE Technical Analysis: Target Breakthrough 300 USD Level

As of Wednesday's press release, AAVE has risen nearly 1%, continuing Tuesday's pump of 3.45%. Following a V-shaped reversal at the end of June, this DeFi token has set a new monthly high.

The continuous rebound of AAVE has bounced from the 50% Fibonacci retracement level of $213.55, with this retracement level falling from the high of $399.85 on December 16 to the low of $114.05 on April 7. Currently, the bullish trend is gradually approaching the 78.6% Fibonacci retracement level of $305.71.

If the closing price is above 305.71 USD, it may continue to pump, approaching the 52-week high of 399.85 USD.

The technical indicators show that trend momentum is gradually strengthening, with the Relative Strength Index (RSI) reaching 60 and moving towards the overbought area. In addition, the Moving Average Convergence Divergence (MACD) indicator shows a rising trend of green bars above the zero axis.

The downside is that the reversal of AAVE may test the 50-day Exponential Moving Average (EMA) at $258.71.

(Source: Trading View)