{"id":17977,"date":"2025-12-15T11:55:57","date_gmt":"2025-12-15T11:55:57","guid":{"rendered":"https:\/\/bitunikey.com\/news\/aave-price-confirms-bullish-reversal-setup-as-tvl-recovers-is-a-breakout-brewing\/"},"modified":"2025-12-15T11:56:28","modified_gmt":"2025-12-15T11:56:28","slug":"aave-price-confirms-bullish-reversal-setup-as-tvl-recovers-is-a-breakout-brewing","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/aave-price-confirms-bullish-reversal-setup-as-tvl-recovers-is-a-breakout-brewing\/","title":{"rendered":"Aave price confirms bullish reversal setup as TVL recovers, is a breakout brewing?"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Aave price has confirmed a breakout from a bullish reversal pattern that could potentially set it up to recover from its losses this year.<\/p>\n<div id=\"cn-block-summary-block_d30321a67c5a58da3bf296ec3e4fb5e2\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Aave price has rebounded after dropping nearly 60% from its August high.<\/li>\n<li>Whales and smart money have increased their holdings over the past month.<\/li>\n<li>A bullish reversal pattern was confirmed on the daily chart.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>According to data from crypto.news, Aave (AAVE) fell 60% from its year-to-date high of $377 reached on Aug. 24 to $150 over the following three months. While it has since managed to recover to $194.5 at press time, it is still down 49% from its August high.<\/p>\n<p>Aave price dropped as activity on its network has slowed over the past few months. <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/defillama.com\/protocol\/aave?groupBy=daily\" target=\"_blank\">Data<\/a> from DeFiLlama shows that the TVL locked in DeFi applications on the network had declined from its yearly high of $76.49 billion to $50.9 billion observed on Nov. 23.<\/p>\n<p>When the TVL on the platform is in a downtrend, it indicates reduced participation from traders and weaker protocol usage, which in turn could prompt investors to seek better-performing alternatives or exit their positions altogether. This, along with the broader market downturn in recent months, played a key role in keeping investor appetite subdued.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Despite this, a slew of catalysts likely helped AAVE bounce back over recent weeks. The TVL on the network has moved back above $56.7 billion, a sign of improving user activity that could have boosted investor sentiment.<\/p>\n<p>Data from Nansen also reveals a renewed accumulation trend among whales and smart money investors over the past month.<\/p>\n<p>Notably, the amount of tokens held by smart money wallets has increased by 27% during this period, while whale wallets have grown their holdings by 7.7%, currently holding over 143.6k tokens. These developments were accompanied by a 22.4% drop in exchange balances, which now stand at 4.4 million.\u00a0<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/app.nansen.ai\/token-god-mode?tokenAddress=0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9&amp;chain=ethereum&amp;tab=smart-money\" target=\"_blank\">Nansen<\/a><\/figcaption><\/figure>\n<p>Taken together, these trends hint at growing demand from investors and reduced selling pressure, factors that could continue to support potential gains in the short term.<\/p>\n<p>Looking ahead, Aave Labs has proposed deploying Aave V3 on MegaETH before its mainnet launch to leverage the high-speed Ethereum L2 scaling solution\u2019s infrastructure. As this is expected to benefit Aave by increasing user adoption, it has the potential to drive its token price higher.<\/p>\n<h1 class=\"wp-block-heading\">Aave price analysis<\/h1>\n<p>On the daily chart, Aave price has confirmed a breakout from a descending broadening wedge pattern, which typically tends to be followed by a strong bullish reversal trend lasting several weeks or even months.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1827\" height=\"888\" src=\"https:\/\/bitunikey.com\/news\/wp-content\/uploads\/2025\/12\/1765799757_869_Aave-price-confirms-bullish-reversal-setup-as-TVL-recovers-is.webp.webp\" alt=\"Aave price has confirmed a breakout from a descending broadening wedge pattern on the daily chart.\" class=\"wp-image-14440221\"><figcaption class=\"wp-element-caption\">Aave price has confirmed a breakout from a descending broadening wedge pattern on the daily chart \u2014 Dec. 15 | Source: crypto.news<\/figcaption><\/figure>\n<p>Adding to this, the 20-day moving average is edging toward a bullish crossover with the 50-day moving average. Such crossovers suggest that control is gradually shifting from sellers to buyers.<\/p>\n<p>As such, the breakout from the wedge pattern points to a rally that could extend to as high as $430 over the coming months. The target is calculated by adding the height of the wedge to the price level at which the breakout was confirmed.<\/p>\n<p>For now, an immediate resistance lies at $204, which aligns with the 38.2% Fibonacci retracement level and has acted as a ceiling for the bulls since November this year. Meanwhile, traders should keep an eye on $189.5 as the nearest support level to watch in the short term.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<div class=\"cn-block-disclaimer\">\n<div class=\"cn-block-disclaimer__icon\">\n            <svg class=\"icon icon-info\" aria-hidden=\"true\"><use xlink:href=\"#icon-info\"><\/use> <\/svg>        <\/div>\n<p class=\"cn-block-disclaimer__content\">\n            Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.        <\/p>\n<\/p><\/div>\n<p><!-- .cn-block-disclaimer --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Aave price has confirmed a breakout from a bullish reversal pattern that could potentially set it up to recover from its losses this year. Summary Aave price has rebounded after&hellip;<\/p>\n","protected":false},"author":1,"featured_media":13444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=17977"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17977\/revisions"}],"predecessor-version":[{"id":17978,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17977\/revisions\/17978"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/13444"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=17977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=17977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=17977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}