AAVE Price Prediction as DeFi United Raises $300M After KelpDAO Hack

AAVE price remained on edge on Wednesday. It was hovering near its lowest level since August 2024 despite the recent efforts by DeFi United.

At press time, the token was trading at $95 today. That’s down sharply from last year’s high of $384, and technicals point to more downside.

AAVE Price Struggles Despite DeFi United Efforts

The biggest players in the crypto industry came together to save Aave following the recent KelpDAO hack. During this incident, hackers stole millions of dollars in the form of rsETH. In total, they stole over $292 million worth of tokens, leaving Aave with millions of dollars in bad debt.

This crisis put the biggest player in the decentralized finance (DeFi) industry at risk of going under. DeFi United contributions salvaged the situation, which has now reached over $300 million.

Some of the top contributors were Aave DAO, Mantle, LayerZero, Stani Kulechov, its founder, Consensys, Arbitrum, and Lido Finance. Justin Sun, the billionaire founder of Tron, contributed $20 million as he urged Aave to expand to the network.

Still, data shows that Aave is struggling, potentially as more people embrace a risk-off sentiment about the industry.

For example, according to DeFiLlama, the TVL in the network has slumped to $14.5 billion. This is a big hit for a platform that had $45 billion in assets a few months ago.

The plunge has also happened in ETH terms. With this drop, the amount of tokens in the network fell to 6.26 million ETH. This is down from 13.7 million in February of this year.

Similarly, the amount of active loans in the network has been in a strong downward spiral. Its active loans dropped to $12.2 billion from $30 billion a few months ago.

A sharp decline in network fees will disrupt its growth. That has been in a strong uptrend in ETH terms in the last two quarters.

It made 83,456 ETH tokens in the first quarter of this year, up from 80,730 ETH in the previous quarter. These fees rose as the TVL and network activity jumped despite the crypto winter.

AAVE Token Demand is Fading

Data shows that Aave crypto demand is fading this year. For example, according to CoinGlass, the daily volume has dropped to $321 million, down from last week’s high of over $1.21 billion. The volume has been falling in the past few days as investors sell following the hack.

Similarly, the futures open interest has risen to $338 million. However, it remains much lower than last year’s high of over $800 million. The weighted funding rate has turned red, a sign of low liquidity in the market.

AAVE Crypto Price Prediction: Technical Analysis

The weekly chart shows that the AAVE crypto token soared to a record high of $666 in 2021. It established itself as the biggest player in the booming DeFi industry. It also soared as the crypto market industry jumped as the Federal Reserve slashed interest rates.

The token then plunged to $44.76 in June 2022 and then remained in a narrow range for years. It then jumped to a high of $400 in December 2024.

A closer look shows that the token has formed a double-top pattern and a neckline at $113. A double-top is one of the most common bearish reversal signs in analysis.

The token has already moved below the neckline at $113. Furthermore, the 50-day and 100-day Exponential Moving Averages (EMAs) support this downtrend.

Meanwhile, the Average Directional Index (ADX) has soared to 40, the highest level since 2024. It’s a sign that the downward trend is gaining momentum.

Therefore, the token will likely continue falling, potentially to the key resistance support level at $44. That was its lowest level in 2024.