Aave (AAVE) broke through the $130 supply zone, a resistance level in place since February 2026, during a rally that began on Wednesday, August 19th. The DeFi token surged from $87.54 to a peak of $145.09, marking a 65.7% move in under five days. The momentum was bolstered by Bitcoin’s gains and significant inflows into Aave V4, with deposits crossing $500 million on August 19th and surpassing $800 million at press time. Active loans also exceeded $216 million, indicating strong capital migration and real borrowing demand.
Aave (AAVE) has decisively cleared the $130-supply zone that has been in place since February 2026. The rally from Wednesday, 19th August, took the DeFi token’s price from $87.54 to a peak of $145.09, hinting at a remarkable 65.7% move in under five days.
Bitcoin (BTC) and the wider crypto market’s momentum helped bolster Aave’s market sentiment. At the same time, news that Aave V4 deposits crossed $500 million on 19th August and crossed $800 million at press time also reflected market confidence. Active loans crossed $216 million too, alluding to sizeable capital migration to the new architecture and real borrowing demand.
Aave’s price slipped from its $145 local high to $124 at press time. The swing structure was bullish following the move above $118.87, and the $120-$130 area appeared to have been flipped to support. The On-Balance Volume (OBV) was trending higher since July, showcasing steady buying pressure, and the RSI reading of 66 reflected momentum that was still bullish.
The $120-support zone is expected to hold if the buying pressure is sustained. The Fibonacci retracement levels showed that a drop to $76-$91 was a possibility in case sellers seize control in the short-term. Over the past few days, the RSI on the 4-hour timeframe has reset towards neutral 50, and the OBV has also seen a dip as AAVE’s price retraced.
The $120-former supply zone is now a critical short-term demand zone. Steady buying pressure can be expected to return and keep AAVE’s uptrend going, especially if Bitcoin can climb above $82K. A drop below $112 would signal short-term bearishness, the first warning sign of a deeper pullback to $76-$91.
Aave’s bullish momentum has been fueled by BTC’s gains, as well as a steep hike in V4 deposits. The retest of the $120-former supply zone represents a buying opportunity.
