 in DeFi protocols has climbed above $167 billion, according to DeFiLlama. It is now moving closer to the all-time high of $212 billion set in December 2021. [caption id=){kind=link}
The total value locked (TVL) in DeFi protocols has climbed above $167 billion, according to DeFiLlama. It is now moving closer to the all-time high of $212 billion set in December 2021.
DeFi TVL surged after the 2024 U.S. elections, reflecting expectations of a more favorable regulatory environment for cryptocurrencies.
Institutional players—including banks, asset managers, corporations, and financial service providers—are entering the DeFi space at a growing pace. Their participation is shaping narratives in the current market cycle and driving liquidity into the sector.
This rapid involvement, however, has sparked debate within the crypto community. Many argue that deeper engagement from traditional finance could lead to tighter government oversight of permissionless protocols and potential centralization of a system built to be open and decentralized.
AAVE Rising Channel Pattern Analysis
On August 24, 2025, the AAVE/USDT daily chart created a rising channel pattern, visible between two upward-sloping parallel trendlines. A rising channel pattern occurs when the price consistently moves higher within two parallel lines, showing steady higher highs and higher lows. It reflects bullish momentum, but a breakout above the channel often signals stronger upside potential.
Currently, AAVE trades at $348.30, while the 50-day exponential moving average (EMA) stands at $295.27, confirming that price action remains above medium-term support. Trading volume on the breakout attempt has also increased, which supports the validity of the move.
If AAVE confirms a breakout from this rising channel, the measured move projection points to a potential 135 percent rally from the current level, targeting approximately $808. This price objective comes from extending the height of the channel above the breakout zone.
The technical outlook shows that AAVE has established strong demand zones near $300, while resistance lies close to the upper channel boundary around $370. Sustained momentum above this area would validate the breakout scenario. With volume strengthening and price maintaining higher lows, the structure leans bullish, keeping the projected upside intact unless a sharp rejection forces a reversal.
AAVE MACD Momentum Analysis
On August 24, 2025, the AAVE/USDT daily chart shows the Moving Average Convergence Divergence (MACD) indicator signaling bullish momentum. The MACD line, currently at 12.25, has crossed above the signal line at 6.40, while the histogram has shifted into positive territory. This crossover often marks the beginning of upward momentum as buying pressure outweighs selling activity.
The last time AAVE experienced a similar crossover was in late April 2025, which led to a strong rally through May. The current setup mirrors that structure, with price consolidating before momentum accelerates. The histogram bars are expanding, which confirms increasing strength behind the move.
When combined with the rising channel breakout projection from the price chart, the MACD supports the case for a sustained bullish phase. If momentum continues to build, the MACD suggests that AAVE could maintain an upward trajectory toward the measured move target of $808, representing a 135 percent increase from the current level of $348.30.
The key confirmation will come if the histogram continues to grow and the MACD line maintains distance above the signal line, signaling strong and consistent momentum.
AAVE RSI Strength Analysis
On August 24, 2025, the AAVE/USDT daily chart shows the Relative Strength Index (RSI) at 62.52, with the RSI moving average at 55.89. The RSI has climbed above the neutral 50 level, signaling that bullish momentum is building as buying pressure gains strength.
The indicator is approaching the 70 threshold, which typically marks the beginning of overbought conditions. However, an RSI reading in the low 60s generally suggests healthy momentum rather than exhaustion. During the April–May 2025 rally, AAVE’s RSI moved into similar territory before extending higher, which makes the current setup comparable.
The RSI uptrend supports the bullish outlook formed by the rising channel and MACD crossover. If AAVE maintains momentum above the 60 level, it could sustain further upside and align with the projected price target near $808, a 135 percent move from the current $348 zone.
At the same time, traders should note that repeated rejections near the 70 level could lead to short-term pullbacks. Still, as long as RSI holds above 50, the broader trend remains constructive.
AAVE Balance of Power Analysis
On August 24, 2025, the Balance of Power (BoP) indicator for AAVE/USDT shows a reading of -0.81, reflecting strong selling pressure in the short term. The BoP measures the relative strength of buyers versus sellers by comparing closing prices with the trading range. Negative values indicate sellers are dominant, while positive values suggest buyers are in control.
Over the past year, the BoP has shown sharp fluctuations, frequently moving between positive and negative extremes. This volatility reflects alternating periods of aggressive accumulation and distribution. The current deep negative reading suggests that sellers have temporarily taken control of the market despite the broader bullish setup indicated by price structure, RSI, and MACD.
However, such sharp negative swings in the BoP often occur during retracements within larger uptrends. If AAVE maintains support above the 50-day exponential moving average and within its rising channel, selling pressure could weaken and give way to renewed buying strength. A shift back into positive BoP territory would confirm that buyers have regained dominance, supporting continuation toward the projected $808 target.