AAVE Breaks Resistance, Targets 46% Upside to $200

The AAVE token has broken out of its resistance band near $125 and surged nearly 10% to about $137 as buyers return to the DeFi segment. The breakout has been accompanied by a sharp increase in volume, which is a bullish sign for the token's future performance.

AAVE is benefiting from renewed demand across the DeFi sector, with capital rotating toward established protocols that have deep liquidity and active lending markets. This shift has outpaced the broader market, placing AAVE among the stronger large-cap DeFi assets during the current recovery.

The protocol's V4 expansion has also strengthened the fundamental case for AAVE, with V4 deposits reaching approximately $419.8 million by August 19, up from around $346 million earlier in August. The Global Dollar Hub has accumulated more than $50 million, and several individual markets have approached their supply-cap limits.

If AAVE can break above the next decisive resistance zone at $145-$150, it could propel the token toward $160-$180 or even the $200-$210 region, representing a 46% upside from its current price. However, a daily RSI above 80 indicates aggressive buying and increases the probability of short-term consolidation or a retest.