What to know:
- The Aave V4 launch aims to scale DeFi adoption by attracting institutional capital and expanding global on-chain liquidity.
- AAVE is testing the midline of a descending channel, with potential upside targets ranging from $105 to $240 if support holds.
- RSI recovery from oversold levels and a bullish MACD crossover indicate a possible shift from bearish to bullish momentum.
Aave has launched Aave V4, marking a major milestone in its mission to onboard the next trillion dollars into decentralized finance, as of Tuesday, March 31.
The upgrade builds on its established lending architecture while continuing to rely on battle-tested oracle infrastructure. This move reflects a broader push to scale secure, capital-efficient markets for global on-chain liquidity growth.
The protocol continues its integration with Chainlink, whose decentralized oracle networks already secure tens of billions in Aave V3. By delivering reliable, tamper-resistant price feeds, Chainlink strengthens risk management and liquidation systems.
With V4, Aave aims to support institutional-scale capital inflows, advancing DeFi toward mainstream financial adoption and deeper global liquidity integration.
Also Read: AAVE Near $100 as X Layer Expansion Fuels Momentum, Eyes $400 Target
AAVE Descending Channel Midline Signals $240 Rally
Following this major milestone, AAVE is currently testing the midline of a descending channel on the daily chart, which has provided significant support in price action in the past.
According to the crypto analyst Jonathan Carter, traders have attempted to sell and move down, but there has been a significant amount of buying as well, which is likely a positive indicator in terms of confirmation in the market today.
Source: Jonathan Carter’s X Post
AAVE’s technology infrastructure indicates the potential for an upside continuation if the support level holds at the channel’s midline. Traders are waiting to see the confirmation of the breakout as the momentum increases.
The price targets for this token include $105, $130, $145, $180, $207, and $240, which represent the resistance levels for the expansion.
Momentum Indicators Point to Bearish to Neutral Setup
According to TradingView, the RSI is at 45.85, which indicates a neutral position with a slightly upward bias. It followed the movement towards the 30 level, which is indicative of oversold conditions.
As the RSI crosses above its yellow signal line, it indicates the shift in the short-term momentum from bearish to bullish as the buyers come back to the support level of $95.
Source: TradingView
This is further supported by the MACD indicator. Although the two lines, the MACD and the signal lines, are trending downwards, the blue line crosses the orange line in a definite manner.
This is seen by the change in the histogram to green, indicating that the selling pressure is diminishing, and the current price is gradually accumulating upward momentum.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: AAVE Holds Critical Support, Eye Short-Term Rally Toward $150
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