Decentralized finance protocol Aave saw its AAVE token price rise 3.68% over the past day to reach $75.26. With a market capitalization of $1.09 billion, AAVE remains a top DeFi bluechip that continues exhibiting strength amid recent market volatility.

What Factors are Supporting AAVE's Bounce?

After declining over -6% in the past week, AAVE's reversal back above $75 reflects improving sentiment. A few factors supporting the move:

• Broader crypto rebound - Strength in Bitcoin and Ethereum is lifting altcoins like AAVE.
• DeFi resilience - Despite some cooling in DeFi prices, sustained platform usage signals long-term viability.
• Technical breakout - AAVE recapturing its 20-day moving average is a bullish technical development.
• Web3 narrative - Enthusiasm around decentralized apps and protocols persists.

AAVE trading volume of nearly $72 million over 24 hours also confirms buyers are returning after its pullback. The price now looks poised to test overhead resistance near $85.

What's the Short-Term Outlook for AAVE?

In the near-term, AAVE appears positioned to push higher as long as it maintains support at around $70. Its technical picture shows:

• The RSI recovered back above 50, reflecting bullish momentum.
• Its 20 and 50-day moving averages could act as dynamic support.
• $90 represents the next key resistance level if the uptrend persists.

Of course, AAVE remains vulnerable to broader crypto market volatility that could spark sharp reversals. But its recent bounce combined with a return of trading volumes points to growing confidence after its selloff. AAVE reclaiming the $100 level medium-term looks achievable.

Is AAVE's Long-Term Potential Still Intact?

Despite its recent sideways trading, AAVE still holds enormous long-term potential as lending and borrowing in DeFi expands. Several key factors suggest AAVE can experience huge growth over a multi-year outlook:

• Total value locked in DeFi should continue rising, benefitting leading protocols like Aave.
• Transition to Eth2 and layer 2 scaling will unlock greater composability and usage.
• New financial primitive development will expand DeFi use cases and utility.
• Retail and institutional DeFi adoption still have major room for growth from current levels.

Given AAVE's entrenched position in decentralized finance, its token price could substantially outperform Bitcoin and the broader crypto market over the long-term. For investors with a higher risk tolerance, AAVE remains a high-upside way to gain exposure to DeFi's growth.

Conclusion: Two Questions for DeFi Investors

What is a Realistic 2025 Price Target for AAVE?

Given Aave's long-term growth drivers, a rally to $500+ per AAVE by 2025 looks achievable if DeFi adoption accelerates as expected. This would represent a nearly 7x gain from current prices. More aggressive projections suggest AAVE could reach 4-figures before 2030 if it maintains dominance in decentralized lending and borrowing.

Should I Buy AAVE After Its Recent Rebound?

For believers in decentralized finance, adding exposure to a bluechip like AAVE on dips makes strategic sense. Though short-term volatility remains a risk, AAVE appears technically and fundamentally bullish from a multi-year outlook. Periodically accumulating positions in leading protocols like Aave remains a prudent way to gain DeFi exposure for the long-term.