What to Know:
- AAVE surged 10.26% in 24h, outpacing the overall crypto market’s 5.55% gain.
- AAVE handled $180M in liquidations seamlessly during the recent crash, boosting investor confidence.
- Price bounced off key support at $255, with potential upside targets at $265–$280.
In the last 24 hours, AAVE went up over 10.26%, which is much more than the crypto market as a whole, which went up about 5.55%. It’s amazing that this rise comes just days after a violent crash that caused huge sell-offs and big drops in all cryptocurrencies. AAVE’s return shows that people trust its protocol, that the market mood has changed, and that there is strong technical buying.
What Powered the Surge
1. Protocol Resilience
Many crypto projects and exchanges fell during the crash on October 10 and 11. But Aave stood tall. It processed around $180 million in liquidations in under an hour, without any human intervention or protocol breakdowns, which made AAVE’s price drop 64% during a flash crash before recovering 140%.
This event was whispered as a kind of “stress test”, and Aave passed. The fact that its systems worked smoothly under pressure boosted investor trust. Stani Kulechov, the founder, also talked about this strength on social media, which made people feel more confident.
Aave has also been bringing in more value to its system. Its TVL is still high, and protocol fees have been going up, especially when things are unstable. All of this helps AAVE’s reputation as one of the “blue-chip” protocols in DeFi.
2. Market Mood Shift
The crypto market itself got a breather. The Fear & Greed index moved from “Fear” into a more neutral zone, signaling that panic was cooling off. This often leads to money flowing back into altcoins like AAVE.
Over the same 24 hours, the wider crypto market cap jumped ~5.55%, while Bitcoin’s dominance slipped slightly, meaning more funds were flowing into mid and smaller coins. AAVE’s ~10% gain outpaced big names like ETH and BTC. Still, the backdrop isn’t risk-free. Derivatives and leverage are still high, so a sudden change could cause volatility.
3. Key Technical Support
Technically, AAVE found a floor. Its price dipped to touch its 200-day SMA around $255 and then jolted higher. That SMA is a support zone for traders most of the time. The larger support zone between the $240 and $250 Fibonacci zones also made things safer. The indicators are also getting better: the RSI is no longer in oversold territory, and the MACD is showing less bearish momentum.
If AAVE can break above $265 its 7-day SMA, the next upside target lies in the region of $280. But on the flip side, if it loses the $255 support decisively, it could revisit $240 or even lower.
Why This Rally Is Special
AAVE’s trading volume went up a lot along with the big changes in price. More than 570,000 units were traded, which is a lot more than the usual 175,000. This shows that investors were very active during the volatile session, probably because they were able to take advantage of the big price changes.
There was a lot of trading and price changes, which led to consolidation. After that, AAVE traded in a narrow range of $237.71 to $242.80. Traders and investors seem to be taking in the sudden price changes and waiting for more news from the market.
Bottom Line
What makes today’s rebound more interesting is that it’s not just a technical bounce. It comes right after a crash that shook the whole market so for AAVE to claw back 10% so fast suggests real conviction. At the time of writing this AAVE is trading at $253.41.
The crash exposed weak spots in many protocols and exchanges. But Aave’s systems worked automatically under pressure, which may have drawn capital from frustrated users who saw failures elsewhere. In other words: some money may be rotating from broken systems into ones that held up under fire. Also, the rally shows that traders believe Aave’s fundamentals are solid enough to survive stress, and that the market might reward protocols that prove their reliability.
Also Read: XRP Surges 10% Amid $30B Institutional Inflow and Major XRP ETFs in the Pipeline
