Aave’s (AAVE) price experienced a dramatic surge of 95% in May 2025, propelled by shrinking exchange supply, increased whale activity, and a resurgence in DeFi Total Value Locked (TVL). Technical indicators suggest AAVE could soon reach $400, breaking through resistance levels that have held for months, leading the DeFi market. AAVE rebounded from April lows of $113.50 to hit a multi-month high above $260 recently. This rally coincides with Ethereum’s recent breakout and growth across major DeFi platforms. CoinGlass data reveals a significant decline in Aave balances on centralized exchanges, dropping to 4.76 million from 4.89 million just weeks ago. This reduction signifies strong holding behavior and bullish signals within the crypto market. 2025 has seen AAVE rise as a leading DeFi token, with its market capitalization surpassing $4.06 billion and exceeding LDO. Aave’s TVL surged 35% in the past month to reach $24.4 billion – the largest in the DeFi sector. The protocol’s year-to-date fee revenue of $224 million showcases profitability as lending activity rebounds, highlighting Aave’s key role in Ethereum’s thriving ecosystem. Aave’s governance token is breaking through resistance levels and showing strong bullish potential. Technical indicators such as the RSI and MACD suggest continued growth. Analysts predict that if this rally continues, AAVE could hit $400, its highest point since December 2023, marking a significant milestone. However, a drop below the $250 support zone would signal a potential retracement. AAVE’s performance highlights the resurgence of DeFi and whale activity in the market. The token has seen strong support from recent announcements by Aave’s governance team focused on its tokenomics, further fueling growth among whales. While some forecasts remain conservative, analysts predict a positive trajectory for AAVE, with projections ranging from $280 to $300 by Q4 2025 and potentially reaching $791.80 by 2030. Conversely, if bear market conditions materialize, AAVE could experience a significant decline, possibly falling below $150 or $200, reflecting the platform’s volatility and risk profile.