Aave extends rally as 100% revenue redirected to DAO and token holders

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Aave rises 12.96% to $94.04 today

Highlights

Aave denied acquisition and discounted token sale rumors, eliminating major supply risk and boosting market confidence in AAVE.
Aave governance approved redirecting all revenues to the DAO and holders, with a new buyback mechanism under Aavenomics 3.0 to directly enhance token value.
AAVE/USD shows strong short-term bullish momentum, expected to trade between $87.85 and $100.23 over the next 2–3 days with low downside risk.

Market confidence rises as buyback clarity and acquisition denial ease risk

Aave founder Stani Kulechov publicly denied reports of a 15% acquisition of the Aave protocol by Payward, Kraken's parent company, and clarified that any negotiations are strictly limited to Aave Labs’ own allocation, according to Tradingview. This clear rejection of both the discounted token sale rumors and the acquisition removes a key source of uncertainty and supply risk for AAVE, underpinning renewed market confidence. At the same time, Aave governance has approved redirecting all protocol and product revenue to the Aave DAO and AAVE holders, while also unveiling Aavenomics 3.0—a new tokenomics proposal introducing an automated buyback mechanism, further supported by Aave's current annualized revenue of around $134 million set to fund these buybacks. Collectively, these actions strengthen direct value accrual for AAVE holders, helping fuel increased demand in anticipation of the buyback program.

Mixed momentum as bullish signals contrast with oversold oscillators

On the hourly chart, AAVE/USD is positioned above the SMA-20 at $92.73 and the SMA-50 at $86.69, but remains well below the SMA-200 at $116.17. The Ichimoku Kijun is currently at $90.35, acting as immediate support. Looking at indicators, the Moving Average Convergence Divergence (MACD) and the Average Directional Index (ADX) both confirm a buy signal, while the Relative Strength Index (RSI) reads 60.57, also indicating bullish momentum. However, the Stochastic RSI is oversold and the Commodity Channel Index (CCI) is neutral, while Bull/Bear Power is overbought and the Awesome Oscillator remains neutral, reflecting mixed momentum despite current buyer dominance within the session. The divergence between an overbought Bull/Bear Power and oversold Stochastic RSI suggests traders should watch for shifting momentum in the short term.

Buyers favored for breakout as volatility drives short-term outlook

In the next 2–3 trading days, AAVE/USD is expected to move within the $87.85 to $100.23 range, reflecting typical volatility relative to current levels. The likelihood of an upward move remains very high, with buyers favored to test the upper bound of the range if momentum persists. Should price consolidate, a sideways scenario within this corridor is likely; a clear break above resistance would trigger a bullish continuation, while a move below immediate support at $90.35 could open downside risk toward the lower end of the band.

Anton Kharitonov, analyst at Traders Union, notes that recent management statements have reduced governance uncertainty for AAVE, but risks remain. He points out that while new revenue policies and a buyback program may support demand, mixed technical signals and overbought readings make the current move questionable. He believes the outlook is constructive only above $100.23 resistance, with room for caution if support at $90.35 fails. "I remain defensive on AAVE — sustained upside requires confirmation above key resistance before any bullish conviction."

Earlier, analysts noted that Aave was demonstrating robust momentum and increasing institutional interest, supported by governance changes that bolstered positive sentiment despite a broader bearish structure. The latest developments reinforce this constructive outlook, with traders now closely watching for a sustained breakout above the recent trading band to confirm continued upside momentum.

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.