AAVE price surges as Trump-backed WLFI ignites crypto rally
AAVE price chart reflecting sharp upward momentum after major institutional investments.
AAVE reached a yearly high of $359.79 on Dec. 12, driven by major acquisitions led by the World Liberty Financial Initiative (WLFI), a DeFi project backed by U.S. President-elect Donald Trump. Blockchain analytics firm Lookonchain confirmed WLFI's $1 million purchase of 3,357 AAVE tokens at $297.8 each, sparking a nearly 20% price surge.
AAVE/ US Dollar chart (Sep 2022 - Dec 2024) Source: Trading View
WLFI's aggressive investment strategy has significantly boosted its crypto portfolio, now valued at $74.7 million. Its holdings include 14,576 ETH (worth over $57 million), 102.9 cbBTC ($10.3 million), and newly acquired LINK and AAVE tokens. Market analysts suggest that this influx of institutional-level investment has amplified bullish sentiment around AAVE.
Technical indicators signal continued growth
AAVE's recent rally has been underpinned by strong technical indicators. The cryptocurrency broke out from an ascending parallel channel, validating prior resistance as support—a classic sign of bullish momentum. The next key resistance levels are $404 and $456, aligning with the Fibonacci retracement levels and historical price ceilings.
Technical analysts remain optimistic. Indicators like the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) suggest continued upward momentum. Analysts also noted that the Total Value Locked (TVL) in AAVE’s lending protocol has surpassed $40 billion, further solidifying its bullish narrative.
With institutional investment growing and technical indicators remaining positive, AAVE could continue its upward trajectory. Price targets of $404 and $456 are within reach if buying momentum sustains. However, traders should monitor macroeconomic events and potential profit-taking at resistance levels.
We previously explored how AAVE's lending protocol expansion and market-wide DeFi growth supported its price surge, emphasizing its role in the broader crypto market.
