AAVE price is receiving a significant boost in fundamentals as Aave v4 deposits exceed $900 million, with $280 million in active loans. The v4 deposit base has seen a growth of over 100% in the last month, indicating a surge in activity within the latest version.
AAVE V4 Growth Pushes Utilization Higher
The increase in deposits is significant as active loans have also grown with the expanding deposit base. This rise in utilization could potentially boost AAVE price if the increased activity continues.
On-chain activity is on the rise as well. Active addresses have risen in the 30-day, 7-day, and 24-hour periods, indicating an improvement in utility around Aave. However, strong fundamentals alone do not guarantee price increases; market trends need to align as well.
AAVE Price Gets Bullish Golden Cross Signal
AAVE’s daily chart has formed a golden cross between the 50-day and 200-day EMA bands, signaling a bullish trend as the protocol experiences increased deposits, loans, and address activity.
Current market data shows AAVE at $16.02 with $120 as a critical support level. The bullish scenario suggests $160 as the immediate resistance, with $240 as the next major target if the price surpasses that level.
$120 Breakdown Could Change AAVE’s Setup
However, there is a risk involved. If the $120 support level is breached, AAVE could decline towards $85 or even $60.
The current setup relies on both network growth and price structure. While Aave v4 deposits are increasing, utilization is on the rise, and active addresses are growing, AAVE price must maintain its support level and surpass $160 to target the larger $240 level.
