DeFi token Aave has turned parabolic after surging 72% over the past week. Yesterday saw the token surge by 27%, reaching the upper boundary of this price channel, and today it surged by another 45%, breaking that upper boundary and setting a new all-time high.
Initially Aave rose to $480 before coming back down to rest at $445, the resistance provided by a 1.414 Fibonacci Extension level. But from there it continued higher, eventually getting as high as $520 and is now trading beneath $500 and the $496 resistance.
On-chain data provider Santiment points towards a rise in whales as a reason for the price surge. “#DeFi is alive and well in #crypto as $AAVE has skyrocketed to a +33% gain in the past day. #Aave whales which we deem addresses holding 1,000 tokens or more (~$397K+ USD) have ballooned from 266 to 327 addresses this past month, fueling this rally.”
Due to this price rally, the total value locked for Aave has also surged over the past 24 hours by 24%. Data from DeFi Pulse shows that Aave’s TVL has reached $5 billion. This comes amidst a surge throughout the entire DeFi market which has reached a new all-time high of $32.76 billion. Aave is the second biggest contributor to this, trailing only Maker which accounts for 18% of DeFi’s total TVL.
DeFi Market Sees Massive Surge
The DeFi market as a whole has seen a massive surge with Ethereum price rising more than 100% so far this year. The combined market of top 95 DeFi assets has surged more than 279% year-to-date, and the weekly gains of the overall DeFi market currently stand at over 50%.
As far as the short-term outlook for Aave, once buyers break $500 they will face resistance at $520 which is the all-time high, followed by $548, $592, and $600. As expected, the RSI has reached extremely overbought conditions as the market turned parabolic, indicating the bulls might be slightly overstretched.