Aave Faces Potential Dip to $230 as Technical Weakness Surfaces

Despite strong DeFi growth, crypto analyst Ali Martinez warns of a potential price drop for AAVE, citing a ‘M pattern’ on its daily chart. The token currently trades near $285 after failing to break the $330 resistance. If the pattern completes, it could fall toward $230, with support levels at $294 and $278. However, Aave’s strong fundamentals remain intact, boasting over $60 billion in deposits, putting it among the top 40 US banks by assets. Analyst Mhonkasalo notes this puts Aave on track to become one of DeFi’s first trillion-dollar protocols. This growth is fueled by rising adoption in decentralized credit markets, highlighted by a substantial increase in total deposits across lending protocols. Aave leads with $64.6 billion in total value locked (TVL) and continues to see strong revenue gains, generating nearly $500,000 daily in August 2025. The robust performance hints at long-term potential despite short-term price fluctuations.