Aave Could Rise Toward $400–$527 as Ethereum Strength Spurs DeFi Revival, but Profit-Taking Risk May Emerge

  • AAVE reclaimed $300 and aims for $400–$527.

  • ETH strength and possible Fed rate cuts could funnel capital into DeFi lending markets.

  • On‑chain data: 97.4% of AAVE supply in profit (Glassnode); OBV made new highs; MACD rising.

Meta description: Aave price prediction — AAVE reclaims $300; targets $400–$527 as ETH strength and possible Fed cuts boost DeFi. Monitor $300 support and Glassnode metrics. Read more.

What is the Aave price prediction?

Aave price prediction: AAVE has reclaimed the $300 level and is positioned to test $400 and historical resistance near $417–$527 if Ethereum continues higher and macro conditions ease. On‑chain indicators support continued upside, but near‑term profit‑taking risk is elevated.

How will Ethereum strength and Fed policy affect AAVE?

Stronger ETH reduces DeFi collateral costs and increases TVL sensitivity to yield-seeking flows. Federal Reserve Chair Jerome Powell signaled potential rate cuts on August 22, 2025, which can lower borrowing costs and redirect capital toward risk assets. This dynamic supports AAVE demand while also increasing volatility during rotation.




Frequently Asked Questions

What is causing AAVE’s recent rebound?

AAVE’s rebound is driven by stronger Ethereum prices, improving DeFi sentiment and macro hints of rate cuts from the Federal Reserve. On‑chain indicators and accumulation by holders also support the uptrend while historical resistances remain the next targets.

How much upside can AAVE see in the near term?

Short‑term upside targets are $400, $417, and $527 based on Fibonacci extension and 2021 resistance levels. Continued ETH strength and lower rates increase the probability, but traders should account for profit‑taking risk noted by Glassnode metrics.

Key Takeaways

  • Reclaimed levels: AAVE has reclaimed $300; next resistance cluster sits at $400–$527.
  • On‑chain signals: OBV new highs and rising MACD support momentum; Glassnode shows 97.4% of supply in profit.
  • Macro support: Fed commentary on potential rate cuts and ETH strength can channel capital into DeFi.

New highs ahead, but also a warning for AAVE holders

Aave 1-week Chart

Aave 1-week Chart

Source: AAVE/USDT on TradingView

The weekly chart shows a bullish resurgence after a deep retracement early in 2025. Price recovered from below the 78.6% retracement and has since moved higher on improved volume patterns.

On‑chain metrics back the move. The OBV (On‑Balance Volume) made new highs versus late 2024, indicating net buying pressure. The MACD is rising and not yet overextended, suggesting room for follow‑through.

Key resistances to watch are $417 and $527, levels that acted as major supply zones in 2021. Fibonacci extensions highlight intermediate take‑profit zones if momentum continues.

Profit‑taking warning lights

Aave Percent in Profit

Aave Percent in Profit

Source: Glassnode

Glassnode data show 97.4% of AAVE supply is currently in profit. This is the highest level over the past 12 months and indicates elevated potential for profit‑taking events.

Aave Cost Basis Distribution

Source: Glassnode

The Cost Basis Distribution heatmap highlights supply density at price levels. Significant holder concentration exists near $280–$300, which supports those levels as likely stopping points if a pullback occurs.

To the upside, liquidity thins around $390, which can act as a local resistance and trigger short‑term volatility. Traders should combine technical zones with on‑chain signals when sizing positions.

Conclusion

In summary, the Aave price prediction is biased to the upside while acknowledging clear risks. Strong ETH performance and dovish Fed signals improve the odds of AAVE testing $400–$527, but high profit concentration (Glassnode) increases the chance of corrective pullbacks to $300 support. Monitor OBV, MACD and macro headlines and size positions with risk controls. Published: 2025-08-22. Author: COINOTAG Editorial.

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