AAVE breakout confirms a 4-year cup-and-handle pattern, with on-chain TVL topping $70.1B and technical targets between $800–$1,000. Short-term support sits near $315–$320 while momentum suggests a high-probability move toward $1,000 if resistance at $400–$520 is cleared.
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AAVE confirms multi-year cup-and-handle breakout above $360–$380 neckline.
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AAVE TVL surpasses $70.135B, up ~130% YoY, signaling strong ecosystem demand.
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AAVE monthly breakout targets $800–$1,000; treasury at an all-time high, supporting sustainability.
AAVE breakout: cup-and-handle confirmed, TVL > $70B, targets $800–$1,000 — read the full technical and on-chain analysis. Stay informed with COINOTAG.
What is the AAVE breakout and why it matters?
The AAVE breakout is a confirmed cup-and-handle pattern on the AAVE/USDT monthly chart that closed above the $360–$380 neckline. This breakout aligns technical momentum with on-chain strength — notably TVL exceeding $70B — signaling a potential multi-month rally toward $800–$1,000.
How did the monthly chart form the cup-and-handle?
The monthly AAVE/USDT chart formed a rounded bottom from 2021 lows near $45 and peaked in 2021 near $660, creating a textbook cup. A subsequent handle formed between approximately $180–$210. A decisive monthly close above the $360–$380 neckline and a breach of the long-term descending trendline confirm the breakout.
Technical voice: volume surged at breakout and the price now tracks a parabolic trendline from late 2022. Short-term support is the $315–$320 zone; resistance bands lie at $400–$520 and then $660. A measured move projects $800–$1,000 initially, with a longer extension noted at $1,845.40 on select target calculations.
Source: Alex Clay
How strong is the on-chain support behind the breakout?
AAVE’s on-chain metrics show robust support for price action. Total value locked (TVL) has surged past $70.135B, marking the highest level since late 2021. Treasury balances are at all-time highs, rising ~130% year-over-year, indicating protocol-level financial resilience and capital available for growth initiatives.
Market-share notes: AAVE commands significant lending activity on layer-2 networks and leads in on-chain lending metrics. These data points come from public on-chain aggregators and analyst commentary (DeFiLlama, Master Of Crypto, crypto analyst cryptclay), cited here as plain text references without external links.
Source: Master Of Crypto
What are the key technical levels traders should watch?
Front-load support and resistance: immediate support is $315–$320. Near-term resistance runs from $400 to $520; a clear break above that band targets $660 and then the measured $800–$1,000 zone. Volume confirmation and sustained TVL growth improve the probability of achieving targets.
How should risk be managed on this breakout?
Risk-first checklist:
- Set stop-loss below the $315 support zone.
- Scale into positions on pullbacks to $320–$360.
- Take partial profits at major resistance bands ($400–$520, $660).
Frequently Asked Questions
Is AAVE’s breakout supported by on-chain metrics?
Yes. TVL has topped $70.135B and the treasury is at an all-time high, reflecting strong capital reserves and increased lending activity that support the technical breakout.
What price targets are realistic after this breakout?
Conservative targets are $800–$1,000 based on measured move from the cup-and-handle. Longer-term extensions are possible if volume and TVL continue to expand.
Key Takeaways
- Confirmed breakout: Monthly close above $360–$380 neckline validates a 4-year cup-and-handle.
- On-chain strength: TVL > $70.135B and treasury ATH back sustainable demand.
- Risk management: Support at $315–$320; targets $800–$1,000 with staged profit-taking.
Conclusion
This AAVE breakout combines a classic technical pattern with strong on-chain fundamentals — TVL and treasury metrics — increasing the probability of a multi-stage rally toward $800–$1,000. Watch volume and support bands for confirmation and manage risk with defined stops and staged exits. COINOTAG will monitor developments and update as new data arrives.
