AAVE shows technical weakness despite strong fundamentals. Crypto analyst Ali Martinez pointed to the formation of an 'M pattern' on AAVE's daily chart.
AAVE Market and Technical Analysis
According to Ali Martinez, an 'M pattern' has formed on the AAVE chart. This raises concerns that the token price could drop to $230. On August 15, the token traded near $310, but by August 18, it fell to $285, confirming a bearish trend. Martinez identified support levels at $294 and $278, and if the price breaks below these levels, it may accelerate losses toward the targeted $230.
AAVE Deposits Among Top U.S. Banks
Despite technical concerns, AAVE's fundamentals remain strong. Analyst Mhonkasalo noted that the protocol now holds over $60 billion in deposits, placing it among the top 40 U.S. banks by assets. This highlights the rapid growth of decentralized finance platforms. Mhonkasalo also mentioned that the sector may soon witness the first trillion-dollar DeFi protocol.
Revenue Growth and Market Dynamics
AAVE demonstrates steady revenue growth. Token Logic data showed that on August 16, 2025, the protocol generated nearly $500,000 in daily revenue. Revenue increases indicate consistent demand for lending services. Community input characterized AAVE as 'on fire,' emphasizing impressive growth in both revenues and deposits.
AAVE's prospects appear mixed. On one hand, strong fundamentals with rising deposits and revenues, and on the other, technical concerns and analytical results indicating potential declines. Future growth expectations remain in focus.
