Aave Shows Stability Near $265 as Net Deposits Exceed $60 Billion: Is a Breakout Possible?

• Aave price consolidates at $265, up 3% daily, but down 6% in the last 30 days.

• Net deposits have surpassed $60 billion, with TVL and fees indicating a growing demand for DeFi.

• Technical indicators remain neutral, suggesting potential upside above $280.

Aave shows stability near $265 as it surpasses $60 billion in net deposits, signaling a positive trend in decentralized finance.

Aave on-chain metrics surge but market activity cools

Aave (AAVE) is currently priced at $265, reflecting a 3% increase over the last day but a 6% decline over the past month. This price stability coincides with a significant milestone: Aave is the first DeFi project to surpass $60 billion in net deposits, as noted in their August 6 post on X.

Net deposits represent the difference between total supplied assets and borrowed assets on Aave. A positive figure indicates that more money is being lent than borrowed, reflecting user confidence. Stani Kulechov, founder of Aave, emphasized this milestone as evidence of increasing interest in DeFi.

Aave technical analysis

The on-chain metrics for Aave have surged, supported by DeFiLlama data. Aave’s Total Value Locked (TVL) increased by over 45%, from $24 billion in early July to $34.9 billion. Additionally, network fees rose from $48 million in June to $65 million in July, indicating heightened usage and borrower activity.

Despite these strong metrics, market activity remains cautious. Aave’s 24-hour spot volume has decreased by 13% to $297 million, while derivatives volume dropped by 19.3% to $503.6 million, according to Coinglass data. However, open interest rose by 4.1% to $561.9 million, suggesting that leverage is building quietly, often indicating positioning ahead of a potential market move.

Aave appears to be consolidating near crucial support levels. The MACD is currently in bearish territory at -9.31, while the relative strength index is neutral at 43.3. The 100- and 200-day Simple Moving Averages (SMAs) remain in buy zones, although many short- and mid-term moving averages, such as the 20-, 30-, and 50-day Exponential Moving Averages (EMAs), are showing sell signals.

The Awesome Oscillator and Stochastic RSI remain neutral, but momentum appears to be turning bullish. The lower Bollinger Band, which often acts as a local support level during consolidation phases, is just below the current price.

A decisive break above $280 would confirm a move past the 20-day EMA, opening up the next resistance level between $310 and $315. Conversely, if support around $250–$255 fails, AAVE may retest June lows around $230. A drop below the lower Bollinger Band, combined with rising sell-side volume, could accelerate downward pressure.

Key Takeaways

• Aave’s net deposits exceed $60 billion: This milestone indicates growing confidence in decentralized finance.
• Market activity remains cautious: Despite strong on-chain metrics, trading volumes have decreased.
• Technical indicators suggest potential upside: A decisive break above $280 could lead to further gains.

Conclusion

In summary, Aave’s recent performance highlights its stability near $265 while achieving a significant milestone in net deposits. As the DeFi landscape evolves, Aave’s growth and technical indicators suggest a cautious optimism for future price movements.