AAVE Set for $200 Breakout as Balance Expands Institutional DeFi Access

Balance, Canada’s largest crypto asset custodian, added Aave on Wednesday, January 21, and this will allow its institutional users to lend crypto while keeping their assets in a secure and regulated environment. This could propel AAVE to a potential breakout to $200, and this could signal a resurgence in bullish momentum in DeFi markets.

Such integration enables assets that are stored either offline, i.e., in warm wallets, to earn yields without exposure to smart contracts, thus bridging traditional custody solutions with on-chain lending solutions.

For institutional traders, security risks are reduced while gaining access to DeFi opportunities, which would otherwise be available only through self-custody solutions.

AAVE Chart Pattern Signals Potential Bull Run Ahead

While the Balance integration marks a significant milestone, investors are closely watching Aave’s native token.

However, the crypto analyst, Whales_Crypto_Trading, pointed out that AAVE is in a symmetrical triangle compression phase in its daily chart, where a series of lower highs and higher lows are seen in a consistent manner.

This is a common phenomenon in cryptocurrency price charts where a significant price move is anticipated in the near future.

Source: X

If the breakout above the resistance levels of $170-$180 is achieved, then a rally up to $200 is likely, which is a 2x return from the current levels. However, if the stock is not able to breakout above the mentioned levels, then the consolidation would continue, which would delay the rally.

Technical Indicators Suggest Early Stabilization Signals

In the daily timeframe, the token’s price action consolidates after the correction from the highs of around $200 in December. The price created a series of lower highs, after which the price bounced off the support area of $145-150.

The last candles show consolidation, not a reversal, with the price being capped at the $170-180 area. Though the volume levels are average.

Source: TradingView

RSI is currently in the low to mid-40s, which is below the 50 level and indicates weak momentum without an oversold situation. The moving average is also rising slightly and is in a state of equilibrium.

The MACD is below zero and is falling in a fading histogram, which indicates bearish pressure is present and bulls will need a stronger move in terms of momentum to gain control again.

Also Read: Aave Lending Hits $23.7B While AAVE Breakout Opens Path Toward $200