AAVE Surges 25% as DeFi Optimism and SEC Remarks Fuel Rally

AAVE continues its bullish momentum, gaining 3.8% in the last 24 hours and marking a 25% increase since Monday. The DeFi token broke through the critical resistance level at $311.50, with trading volume spiking over 140% above its 24-hour average—indicating strong investor confidence and potential for further upside.

This price surge aligns with recent positive developments in the decentralized finance sector. Notably, the U.S. Securities and Exchange Commission hosted a roundtable discussion earlier this week, where SEC Chair Atkins hinted at exploring regulatory exemptions for DeFi platforms. This regulatory softening has renewed market optimism and boosted investor sentiment toward major DeFi protocols like AAVE.

Technically, AAVE has established a solid support zone between $302.35 and $302.52. It experienced a high-volume breakout during the 12:00 UTC hour, followed by consolidation between $305 and $310. After a brief pullback, the price found support near $312.00—aligned with the 38.2% Fibonacci retracement of the prior uptrend—before stabilizing between $312.00 and $312.60 on reduced volume.

Analysts remain bullish on AAVE’s long-term trajectory, citing strong fundamentals, growing adoption, and improving regulatory outlook as key drivers. Some projections place the token as high as $1,000, though such targets remain speculative and subject to broader market conditions.

As institutional attention on DeFi grows and AAVE maintains upward momentum, the token stands out as a key asset to watch in the evolving Web3 landscape. Traders are now eyeing the next resistance levels, with continued volume and price strength signaling a potential breakout continuation.