AAVE rose 25% on May 20 and reached $269, reaching its peak since February 2025. Since hitting its lowest point in April, Bitcoin has risen by 132%.

This rally was sparked by good news about the ecosystem and solid technical readings. It has become a strong performer during the current crypto cycle.

Key-Takeaways:

• AAVE reached $269 on May 20, the highest it has traded since February 2025, up 132% from its April low. The combination of good ecosystem news and improving technical data has made it one of the best-performing cryptos.
• Evidence such as the golden cross and high Aroon Up backs the ongoing increase in the market. As volume rises and emotions are positive, AAVE approaches a major resistance level at $271.35, hoping to climb to $347.19 if it succeeds in a breakout.

What the Golden Cross Pattern and Technical Indicators Reveal

Bullish trends are shown in AAVE’s price movement, and a golden cross is on the way to forming on the daily chart. When the 50-day average goes above the 200-day average, many analysts see it as a continued signal that the market will go higher.

Many traders see this as a sign that good times are ahead for the financial market. More signs are pointing to its entry into a sustained uptrend.

The Aroon indicator also helps prove that AAVE’s recent upswing has strong market support. The Aroon Up is at 100%, with the Aroon Down at 0%, showing that buyers are definitely in charge of the current trend.

With a reading of 0.26 on the Chaikin Money Flow Index, the market still appears to support buying AAVE. If the value increases, it likely shows that both institutional and retail investors are now piling into the token.

It has reached a major resistance area at the 61.8% Fibonacci retracement, which lies near $271.35. A positive breakout from this threshold might allow the price to climb further.

Once AAVE overcomes this level, it could advance to the 50% Fibonacci retracement level at $347.19. We could expect VNQ to move up by over 30% if current trends continue.

State of the Financial Markets

On May 20, trading of AAVE tokens rose to more than $800 million. Since early March, this has been the busiest trading day.

The rise in volume shows that the recent increase is genuine. It proves there is real interest in the product as opposed to just brief market manipulations.

Things look positive in the derivatives market as well. Demand for AAVE futures is soaring, as traders have pushed open interest to an all-time record of $569 million.

For the past two weeks, the AAVE funding rate has been positive. People who believe in rising prices are overpaying to get involved, hence the premiums. We are seeing an increase in activity on the blockchain. The increase in daily active addresses by 57% in just two days means users are interacting more on the network.

More importantly, how people view AAVE is becoming more positive. There is now a positive trend in weighted social sentiment, which suggests investors are feeling more confident about the token’s immediate future.

TVL Leadership and Creating Incomes

AAVE has maintained its first position in crypto finance, seeing Total Value Locked (TVL) climb to $40.7 billion in the last four weeks. Because of this rise, the difference between AAVE and the next largest DeFi network, Lido, has grown.

Such a significant increase in TVL points to users having confidence in these projects. It also points out that investors are directing more of their money into DeFi to find investment opportunities.

The fact that AAVE leads the market is powering its revenue gains. The protocol has already created more than $250 million in fees this year.

Because of this, AAVE is now considered one of the most lucrative decentralized protocols around. The continuous payments it generates prove cryptocurrencies are becoming more useful.

It supports many transactions thanks to stablecoins USDC, DAI, and the GHO token. Having a stablecoin in the system will ensure both growth and regular earnings over the long run. The buyback program also helps make investors in AAVE feel more confident. It helps to stabilize the protocol’s finances when $1 million in tokens are purchased weekly.

The GENIUS Act which advanced in the U.S. Senate last week helped AAVE to rally in price. The Senate passed a key step, which shows more people are now in support of the bill.

Its purpose is to develop rules for the regulation of stablecoins. Because stablecoins are essential for AAVE and DeFi, the bill might shape future developments. Gaining clear rules about regulation would be a big improvement. This may encourage institutions to show more interest and improve trust in AAVE’s network.

Conclusion

With solid fundamental and regulatory backing, AAVE is on the verge of more progress. The fact that BTC dominates DeFi, earns more and sentiment is improving shows how the sector is maturing. The golden cross and price approaching resistance have the market debating if AAVE can reach its target of $347.