AAVE Price Surges 30% as Collaborations & Fed Rate-Cut Hopes Fuel Momentum

Recently, the AAVE price has posted an impressive rally this week, flipping the MVRV 30-day positive by surging nearly 30% from $275 to $355 on the daily chart. 

This move comes as AAVE crypto’s investor confidence grows, driven by fresh integrations with major projects, macroeconomic tailwinds, and strong on-chain fundamentals. 

Now, as momentum is strengthening, traders and investors alike are seeking the December 2024 high of $400 as the next major hurdle in the short term.

Primary Reason Why AAVE Price Spiked?

This week, one of the key catalysts behind the most recent rise is the announcement of strategic collaborations. The X post reveals that Aave has integrated with Aptos and Chainlink, which has expanded its ecosystem and accelerated mainstream DeFi adoption. 

Also, specifically, the integration includes Chainlink, in particular, which is being viewed by investors and experts as a major step toward scaling secure and transparent finance across multiple networks. 

This development has been the primary element this week responsible for the boosted sentiment around the project, reflected directly in the AAVE price chart.

Macro Tailwinds From Federal Reserve Outlook

Alongside technical progress and integrations, macroeconomic conditions have also provided support. As Federal Reserve Chair Jerome Powell has signaled that economic shifts may prompt a potential interest rate cut in September. 

The remarks around a “shifting balance of risks” between inflation and employment sparked optimism in financial markets. 

Therefore, a softer monetary policy stance is generally seen as favorable for risk assets like cryptocurrencies, which is why it is giving additional momentum to the AAVE price today.

Key Technical Levels on AAVE Price Chart

From a technical perspective, the AAVE price USD has broken through a major supply zone. Traders are watching the December 2024 high of $400 as the next test of strength. 

If this barrier is cleared, the next upside targets lie at $446, $538, and $663, levels that are firmly on investor radars. 

Moreover, the weekly chart indicates a rally supported by a two-year-old ascending triangle structure, which is highlighting long-term bullish demand that continues to build in favor of an extended breakout.

Additionally, Analyst Javon Marks is optimistic about AAVE, indicating that it is on the verge of surpassing $600. He anticipates a potential increase of up to 72% from its current price, reflecting a strong bullish outlook for the cryptocurrency.

Rising On-Chain Strength Supports AAVE Price Forecast

The bullish case is further strengthened by rising on-chain activity. As the 30-day MVRV has turned positive, which reflects that the address’s 30-day P&L has turned positive.

Similarly, Aave’s TVL (Total Value Locked) has also reached an all-time high of $40 billion, reflecting deep investor trust and growing adoption of its lending protocol.