$AAVE price has started a fresh recovery rally, surging nearly 10% toward $137 as buyers reclaim a resistance band that had capped the token for weeks. The breakout arrives alongside renewed strength across the DeFi segment and continued expansion in Aave V4 deposits. With volume accelerating and the daily structure turning higher, the market is now testing whether $AAVE can convert the $120-$125 breakout zone into support and extend the move toward $150 before challenging the larger $200 resistance.
DeFi Rotation Gives $AAVE a Fresh Bid
$AAVE is benefiting from renewed demand across the DeFi segment as capital rotates toward established protocols with deep liquidity and active lending markets. The token’s latest advance has outpaced the broader market, placing $AAVE among the stronger large-cap DeFi assets during the current recovery. $AAVE had spent much of the previous phase under sustained selling pressure, while DeFi liquidity remained subdued. The latest rotation has changed that dynamic, with traders returning to protocols that can capture increased borrowing, lending and stablecoin activity.
$AAVE’s relative strength has therefore become a key feature of the current move. The broader market is supplying liquidity; Aave’s improving protocol metrics are providing the fundamental justification for that liquidity to remain concentrated in the asset.
Aave V4 Deposits Strengthen the Fundamental Case
The protocol’s V4 expansion provides a more tangible catalyst behind the token’s repricing. Aave V4 deposits across five hubs reached approximately $419.8 million by August 19, according to governance data, marking another increase from earlier August levels. The figure had climbed from roughly $346 million to $396 million earlier in the month, demonstrating continued capital inflows following the V4 rollout.
The Core Hub accounts for the largest share, while the Global Dollar Hub has accumulated more than $50 million. Several individual markets have approached their supply-cap limits, prompting discussions around increasing capacity as utilization rises. V4 has also expanded beyond Ethereum, with the deployment on Avalanche adding another liquidity venue to the protocol’s latest architecture.
$AAVE Price Analysis: $150 Is the Immediate Breakout Test
After falling toward $60-$65 in June, $AAVE token established a base and began recovering. Price subsequently consolidated between approximately $95 and $115, forming a multi-week accumulation range beneath descending resistance. The next structural shift came with the recovery above the rising trendline. $AAVE has now cleared the $120-$125 resistance zone, accompanied by a sharp expansion in volume, and is trading near $137-$140.
That leaves $145-$150 as the next decisive supply zone. A daily close above $150 would confirm that buyers have absorbed the immediate overhead supply and could extend the move toward $160-$180. The bigger target sits near $200-$210, a major historical supply region visible on the higher-timeframe chart. From $137, a move to $200 would represent roughly 46% upside. The daily RSI has moved above 80, indicating aggressive buying and increasing the probability of a short-term consolidation or retest. That would remain constructive if $AAVE holds the breakout region.
The key support is now $120-$125. A successful retest would reinforce the resistance-to-support flip. Conversely, a sustained move below $120 would weaken the breakout and expose the $105-$110 area.
