Aave gains 7.19% as new revenue plan and Mantle launch spark fresh momentum

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Aave jumps 7.19% today to $115.04

Highlights

Aave Labs proposed the 'Aave Will Win' governance plan, redirecting all Aave-branded product revenue to the Aave DAO treasury to enhance decentralization.
Aave expanded its DeFi lending and borrowing protocol through a partnership with Bybit, officially launching on the Mantle network.
AAVE trades at $115.04, below key moving averages (MA-20: $131.07, MA-50: $149.88, MA-200: $223.35), with prevailing bearish momentum and key resistance at $134.88.

Governance overhaul and new partnerships as decentralization strategy advances

Aave Labs has proposed a new governance plan called 'Aave Will Win' to redirect all revenue from Aave-branded products to the Aave DAO community treasury, supporting further decentralization. The proposal involves new monetization features and a reinvestment module as part of the platform’s upcoming V4 upgrade. Additionally, Aave has expanded its reach by officially launching its DeFi lending and borrowing protocol on the Mantle network through a partnership with Bybit.

Persistent bearish momentum confirmed as oversold signals intensify

Technically, AAVE faces strong resistance with the Ichimoku Kijun at $134.88, remaining entrenched below MA-20, MA-50, and MA-200. Daily chart momentum remains bearish — MACD and ADX both signal continued seller control. RSI sits deep in oversold territory at 30.35, with CCI at –87.52 and Bull/Bear Power at –6.28, supporting the prevailing bearish structure. Although the Stochastic RSI generates a Buy signal and minor oscillators show signs of a potential intraday reversal, buyers have yet to assert meaningful control.

Consolidation expected as downside risk outweighs rebound probability

For the next five sessions, AAVE is expected to fluctuate within a volatility band of $109.75 – $115.17. Given persistent bearish signals in weekly moving averages, MACD, ADX, and RSI, the likelihood of further price increases is under 20%. The base-case scenario is sideways consolidation as oversold conditions are gradually absorbed. A sustained break above $134.88 could prompt recovery, while a drop below $109.75 would likely resume the broader downtrend toward the next round number or previous lows.

Anton Kharitonov, expert at Traders Union, sees AAVE firmly under bearish control after its sustained slide below all major moving averages and resistance levels. He believes fundamental steps like the 'Aave Will Win' proposal and expansion to Mantle have not yet reversed negative technical momentum. The analyst expects limited upside for now, barring a decisive close above $134.88. "Base case remains sideways until key resistance at $134.88 is retaken — sellers still hold the upper hand."

Last time, analysts noted that AAVE remains in a persistent downtrend, with technical indicators like the Supertrend and parabolic SAR signaling ongoing bearish momentum and limited support below current levels. Price action continues to show lower highs and distribution on rallies, while the $140-$150 zone stands out as the critical resistance level that must be reclaimed to shift sentiment toward a potential reversal.

Source of Data: AAVE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.