AAVE Surges 8% Amid Market Recovery as Traders Weigh Bitcoin’s Bounce
📈 Key Highlights:
- AAVE jumps nearly 8% as the crypto market attempts to recover from Monday’s sell-off.
- Crypto market capitalization climbs back above $2.9 trillion, despite institutional caution toward risk assets.
- Bitcoin, Ethereum, and XRP see slower recoveries ahead of the White House Crypto Summit on Friday.
AAVE Rides the Wave of DeFi Expansion
AAVE’s rally follows its recent expansion to Sonic, a blockchain evolved from Fantom, marking its first Layer 1 deployment in 2025. The move came after the successful governance proposal for AAVE v3, bringing in $33 million in Total Value Locked (TVL) within 24 hours.
Additionally, large wallet investors are accumulating AAVE, with izebel.eth (@izebel_eth) purchasing $4.25 million worth of the token, according to Lookonchain.
🚀 Market Performance:
- AAVE: +8% on the day
- Bitcoin (BTC): +1.21%
- Ethereum (ETH): +3.15%
- XRP: +1.85%
Despite debates over XRP’s addition to the US Crypto Strategic Reserve, the altcoin holds onto its 7-day gains of nearly 8%. Meanwhile, Ethereum hovers around $2,100, and Bitcoin inches closer to $90,000 resistance.
Can AAVE Extend Its Rally?
📊 Technical Indicators:
- Relative Strength Index (RSI): Trending upward at 47, close to the neutral 50 level.
- Moving Average Convergence Divergence (MACD): Shows bullish crossover, signaling positive momentum.
- Key Resistance: $254.04 (50-day EMA) → A breakout here could lead to 13%+ gains.
- Support Level: $213, marked by the Fair Value Gap (FVG) on the daily chart.
Market Sentiment & Proposed US Tariffs
The market is still digesting Monday’s price collapse, which followed Donald Trump’s strategic reserve announcement. Bitcoin may have hit its all-time high in January, but February saw a 17.39% decline—the steepest drop since 2014.
🔎 With over $1 billion in liquidations across derivatives markets, traders remain fearful, as reflected in the Crypto Fear & Greed Index at 20 (Extreme Fear).
📅 What’s Next?
- Will Bitcoin’s rally above $87,000 provide enough confidence for altcoins like AAVE to continue surging?
- Will Friday’s White House Crypto Summit bring regulatory clarity or more uncertainty?
- Can Ethereum sustain its inflows, or will institutional risk aversion cap further gains?
The coming days will be critical for market sentiment and price action across the board.
