Aave (AAVE) Rallies 7% Alone in Bear Market...Solidifying its Dominance as DeFi Leader?

▲ Aave (AAVE)/AI-generated image

Aave (AAVE) showed a differentiated rebound in the bear market, breaking through the 50-day exponential moving average, backed by the return of DeFi funds and buying momentum in derivatives.

According to crypto media outlet FXStreet on June 25 (local time), Aave surged over 7% the previous day and continued its upward trend above a key resistance level. Analysis suggests that the inflow of USDT deposits back into the protocol strengthened both liquidity and earning opportunities in the lending ecosystem.

Aave founder Stani Kulechov stated on X (formerly Twitter) on Wednesday that USDT deposits are returning to the protocol. Deposits in the Ethereum V3 core market approached $3 billion and have increased rapidly since mid-June.

Derivatives indicators also supported the buy-dominant trend. According to Coinglass, Aave futures open interest increased from $193 million on June 11 to $283.33 million on Thursday. The funding rate also turned positive on Tuesday and recorded 0.0014% on Thursday.

In terms of technical trends, the 50-day exponential moving average at $79.44 was presented as a short-term support level. The preceding downtrend line is acting as support near $72.23, and the Relative Strength Index (RSI) remained in the buy-dominant zone at approximately 61. The Moving Average Convergence Divergence (MACD) also stayed above the signal line and the 0 line.

The upper resistance level of $88.73 was identified as the first hurdle. Subsequently, the 100-day exponential moving average at $91.36 and the 200-day exponential moving average at $117.78 are waiting. Conversely, if $79.44 is breached, $72.23 and $60.96 are suggested as the next support levels.

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