AAVE’s Bull Run: 2 Compelling Reasons It Could Hit $416 This Cycle

DeFi''s sleeping giant is waking up—and this rally has teeth.

Reason 1: Liquidity Tsunami Meets Tokenomics

AAVE''s protocol revenue just flipped Ethereum''s—again. When yield hunters swarm, they don''t bring picnic baskets.

Reason 2: Shorts Getting Rekt

Funding rates turned negative last week. Now perpetual traders are learning why you don''t fight the Fed—or algorithmic liquidity pools.

Wall Street still thinks DeFi is ''just ponzi schemes with extra steps.'' Meanwhile, AAVE''s price action keeps printing retirement accounts.

Whale activity skyrockets! 

Large transaction counts have exploded.

According to IntoTheBlock, transactions in the $100K–$1M range spiked by 360.77%, while the $1M–$10M cohort surged 283.33%.

Source: IntoTheBlock

Such notable transactions are typically associated with whales or institutions.

Moreover, this surge was observed following a breakout above a key level, which likely contributed to the price rally and now signals continued bullishness for the asset.

$310 and climbing…..

At press time, the altcoin traded just above $310, clocking a 7% gain in 24 hours. More importantly, Trading Volume jumped by 55%, confirming strong spot participation.

When price increases happen alongside spikes in trading volume, it often indicates genuine conviction rather than temporary hype.

A rise in volume with the price suggests strong market support and buyer confidence, indicating a potentially sustainable rally.

Technical analysis from AMBCrypto suggested that Aave appeared bullish, having successfully broken out of a strong resistance level at $290. 

This breakout followed a period of prolonged consolidation, which is itself a bullish signal, and it indicates that the upcoming rally could be parabolic.

Source: TradingView

If the altcoin maintains its upside momentum and holds above the $290 level, the upward trend could continue. Thus, there is a strong possibility that AAVE’s price could surge by over 35%, reaching the $416 level.

This breakout, paired with the asset trading above the 200-day Exponential Moving Average, strengthens the case for continuation.

$5.63 million worth of AAVE outflow

Meanwhile, this bullish outlook is further strengthened by potential accumulation from investors and long-term holders, as reported by the on-chain analytics firm CoinGlass.

Data from Spot Inflows/Outflows revealed that exchanges recorded an outflow of approximately $5.63 million worth of AAVE tokens over the past 48 hours.

Source: CoinGlass

Currently, such outflows indicate potential accumulation, creating buying pressure and upward momentum. Overall, it seems that the bulls are pushing AAVE’s price toward a new high.