Buying pressure lifts Aave price higher in today's trading

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Aave surges 16.23% today on strong inflows

Highlights

Aave regained market share with over $200 million in new Ethereum deposits after launching its V4 protocol and recovering from an April exploit.
DAO governance approved the V4 rollout and is deliberating on resuming token buybacks and expanding through Aave Horizon.
Strong short-term momentum persists with intraday overbought signals, as Aave trades in a $78.56–$88.57 range; baseline expectation is sideways consolidation.

Market dominance regained as V4 launch and governance moves lift sentiment

Aave has recently experienced significant developments, including the formal launch of its V4 protocol and recovering deposits following an exploit in April 2024 that temporarily exposed the platform to potential losses of up to $230 million. Deposits on Ethereum have surpassed $200 million, helping restore Aave's dominant position with around 46% of active DeFi lending activity. At the same time, Aave DAO governance has approved the V4 rollout and is considering the resumption of a paused token buyback program, alongside expansion efforts through the Aave Horizon initiative.

Anton Kharitonov, expert at Traders Union, emphasizes the underlying fragility despite Aave’s 16% rebound. He notes momentum is driven by deposit inflows and a recovery narrative, but warns that longer-term technicals remain bearish with price below the 200-day moving average. The failed exploit recovery leaves systemic risks unresolved. Sentiment is still fragile given the earlier exposure of vulnerabilities and limited fundamental catalysts. In his view, the path ahead is volatile and investors should be guarded. "Until Aave reclaims its long-term trend and deals decisively with structural risks, the upside looks unreliable to me."

Viktoras Karapetjanc, expert at Traders Union, sees strong recovery signals in Aave’s latest move. He points to decisive governance, robust deposit growth after the exploit, and the energetic V4 rollout as signs that Aave’s bullish structure remains intact. The protocol’s return to a 46% DeFi lending share underscores regained market leadership. He believes expansion through Aave Horizon and possible token buybacks add upside fuel. "With fundamentals turning positive and on-chain participation rising, I expect further growth and see clear bullish opportunities ahead."

Mixed technical signals emerge as price tests key resistance with momentum

Aave is trading above its 20-day and 50-day moving averages, with the current price at $83.57 compared to the MA-20 at $69.39 and the MA-50 at $80.56. This setup suggests strong short- and medium-term momentum. However, price remains below the 200-day moving average at $117.18, and the MA-50 is still below the MA-200, leaving the longer-term bias bearish. Immediate resistance sits at $85.12, with support near the MA-50 at $80.56. Momentum signals are mixed: the MACD is neutral, the ADX indicates weak trend strength with a "Sell" signal, while the Stochastic RSI and Bull/Bear Power both point to overbought conditions. The RSI reads 58.7, just below overbought, and the CCI and Awesome Oscillator both indicate strong buying pressure.

Earlier, analysts noted that Aave was exhibiting robust adoption momentum and buyer strength, while remaining constrained by a broader bearish structure. The latest developments—particularly the recovery of deposits and renewed protocol growth—reinforce this thesis, making near-term consolidation between $78.56 and $88.57 the prevailing outlook as Aave navigates key resistance and support levels.

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

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