Price prediction for Aave: AAVE overcomes market turbulence, reaching a total lending value of 1 trillion USD.

The price of Aave (AAVE) is bouncing back strongly, surpassing the 196 USD mark at the time of writing on Wednesday, after a market correction earlier in the week. Despite previously falling, this decentralized lending protocol (DeFi) is still approaching the milestone of 1 trillion USD in total loan value since its launch – a testament to the strong vitality of the network and sustained demand from users. At the same time, on-chain data and derivatives markets are also recording positive signals, as whale activity increases, buying pressure dominates, and the funding rate has shifted to the positive zone.

Aave approaches the milestone of 1 trillion USD in total loan value

Aave announced on its official X account on Tuesday that the protocol is approaching the milestone of 1 trillion USD in total loan value – an impressive achievement that reflects the strong vitality of the network and the sustainable demand for DeFi products, despite the recent fluctuations in the cryptocurrency market. This milestone also demonstrates Aave's significant resilience against the overall industry pressure.

Notably, Aave's tokenization segment of real-world assets (RWA) – called Horizon Real World Asset – has surpassed 520 million USD in deposits, becoming the fastest-growing segment in the category of asset-backed loans. This success reflects the increasing interest from traditional financial institutions, while also highlighting the trend of DeFi's expanding influence on the real economy.

Aave's on-chain data and derivatives indicate a rise signal

Data aggregated from CryptoQuant continues to reinforce the positive outlook for AAVE. The spot and futures markets both recorded large buy orders from whales, amid cooling market conditions and dominant demand, indicating that a bounce back trend is gradually forming.

In the derivatives market, data from Coinglass on OI-Weighted Funding Rate is also in tune with this scenario. The ratio of traders betting on a bearish scenario has narrowed, while the bulls are clearly dominating.

Funding rate chart of Aave | Source: CoinglassNotably, the funding rate has shifted to a positive level, reaching 0.0089% on Wednesday, indicating that the long position (Long) is now required to pay fees to the short position (Short). Market history shows that whenever the funding rate reverses from negative to positive, the price of AAVE usually experiences a strong breakout in the subsequent bounce back.

Price Forecast for Aave: AAVE Tests Key Support Zone

The price of Aave (AAVE) was strongly rejected at the Fibonacci level of 78.6% — corresponding to 254.35 USD — on October 27, before plunging more than 22% in 8 days, returning to test the important support zone around 179.27 USD on Tuesday. This area is close to the Fibonacci 50% level at 190.73 USD and coincides with the lower trendline of the descending wedge pattern, making it a key defensive point for the bulls. At the time of writing, AAVE is hovering around 196 USD, slightly above this support zone.

If the level of 179.27 USD continues to be held, AAVE could open up a bounce back towards the 50-day exponential moving average at 246.01 USD.

Daily AAVE/USDT Chart | Source: TradingViewOn the daily timeframe, the RSI is currently at 37 and is gradually approaching the neutral zone of 50 — an early sign that the downtrend is weakening. However, for the recovery trend to be confirmed, the RSI needs to surpass this neutral threshold.

On the contrary, if AAVE closes below 179.27 USD, selling pressure may increase, pulling the price further back towards the weekly support zone around 160.51 USD.

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