Aave Coin continued its recovery on Friday morning, rising above $205 and gaining about 7% in 24 hours as new money entered the market and traders reacted to better technical signals. This move brings Aave back into the spotlight after weeks of trading near its recent lows.
Multiple Catalysts Emerge for AAVE Coin
On-chain data shows a whale address borrowing 1M USDC through recursive lending to purchase 5,211 AAVE, bringing its total holdings to 338,544 AAVE (about $69M) while carrying $30.8 million in debt. The pattern fits within a broader 30-day trend of whale accumulation, with large holders increasing their share of supply by 3.32%.
This buildup shows confidence in Aave’s potential to rise, but using leverage also adds risk. If there are big changes in ETH or USDC liquidity, the position could come under pressure.
Another important update for Aave is the launch of Yield Mode by Tangem Wallet on December 11. This new feature lets users earn Aave-based yields on USDT, USDC, and DAI directly in the hardware wallet app.
This rollout is aimed at retail users who want easy access to DeFi while staying secure. Since over half of USDe-related assets are already on Aave, making stablecoin deposits easier could strengthen Aave’s position as a key source of liquidity for consumer apps.
Aave also shared details about its upcoming V4 liquidation engine. This redesign will move from fixed close factors to a target health-factor model with variable bonuses. The goal is to prevent too many liquidations, improve capital utilization, and encourage faster clearing of risky positions. This is important for a protocol that has already handled over 295,000 liquidations worth more than $3.3 billion.
Aave Price Breaks Key Levels as Momentum Improves
AAVE is now trading above its 30-day simple moving average ($182.63) and 7-day exponential moving average ($195.24), which points to a short-term trend change. The MACD histogram is positive (+3.38), showing better momentum, and the RSI at 56.58 suggests the market is strong but not overbought.
Clearing the $200 psychological level is meaningful. Analysts like World Of Charts previously flagged resistance zones near $205–$210 and a larger trendline that required multiple breakout attempts.
With those levels reclaimed, traders are watching the 200-day SMA at $261.64 as the next major upside barrier, and eventually $300 in the coming days. Support currently sits near the 23.6% Fibonacci level at $202.70.
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