Renowned technical analyst Ali Charts has predicted a massive rally for AAVE, with the price potentially reaching $125. His prediction is based on a striking resemblance between AAVE’s current chart pattern and a historical cycle that delivered significant gains. As per his latest post on X (formerly Twitter), the chart shows uncanny similarities: if the pattern holds, AAVE could experience a 700% upside from its current levels. This comes at a crucial time for lending protocols in DeFi as their TVL has been climbing rapidly and institutional interest continues to grow. Ali’s analysis involves comparing historical charts with current data, highlighting a potential base forming resembling that of the peak in 2021 before a pullback followed by an explosive upward move. He emphasizes this chart pattern aligns with Elliott Wave theory and fractal geometry. AAVE is currently priced around $180 with its total value locked (TVL) exceeding $10 billion as the sector witnesses increasing interest from institutional investors. However, Ali’s prediction isn’t just a gut feeling; it’s based on historical observations and his expertise in technical analysis. With DeFi TVL surging 25% this year, driven by real-world asset (RWA) integrations and Ethereum’s Dencun upgrade which decreased fees, Aave’s V3 iteration – with cross-chain capabilities – is primed to attract yield-hungry capital from traditional finance (TradFi). However, the path ahead isn’t without challenges. Macroeconomic headwinds like stubborn Fed rate hikes could act as a ceiling on upside and the distribution of large whales needs to be observed, according to Ali’s analysis. 2025 marks another significant year in crypto history after Bitcoin’s recent stabilization following its $100k mark. AAVE has been a consistent leader in this rally. As Bitcoin stabilizes, the altcoins like AAVE often experience rapid growth, and traders are advised to pay attention to the $200 level – if it is breached, this could trigger an expected surge to $125 and beyond. While this prediction is based on historical trends and Ali’s expertise in technical analysis, investors must conduct their own research before making any decisions.