Aave price jumps as token buying pressure builds

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Aave surges 10.43% today to $95.91

Highlights

Aave has shifted all protocol revenue to its DAO and token holders, enhancing value accrual mechanisms and decentralization.
The upcoming Aavenomics 3.0 will implement an automated AAVE buyback, while USDT deposits on Ethereum approach $3 billion amid strong platform activity.
AAVE/USD shows short-term bullish momentum with overbought signals and consolidation expected between $92.56 and $97.46, with a possible move toward $109.75.

Protocol revenue redirection and whale activity spur bullish sentiment

Aave, a leading decentralized finance lending platform, announced that all protocol revenue is now directed to the Aave DAO and token holders rather than Aave Labs. Founder Stani Kulechov confirmed work on Aavenomics 3.0, which will introduce an automated, non-discretionary buyback mechanism for the AAVE token. In addition, the platform recorded a surge in activity, with USDT deposits on the Ethereum market approaching $3 billion and increased whale transactions and trading volumes. Reports of crypto exchange Kraken negotiating a 15% stake in Aave Group for roughly $71 million were publicly denied as discounted token sales by the founder.

Anton Kharitonov, expert at Traders Union, views the recent Aave rally as technically fragile. He sees short- to medium-term momentum improving due to news-driven hype, but warns that broader trends remain against bulls. Kharitonov notes persistent long-term weakness with price still capped below the 200-day moving average and warns overbought oscillators signal exhaustion. Whale inflows and rising trading volume may temporarily support the price, yet he questions the sustainability of these flows after the initial news. "Until AAVE conquers $116.17 and confirms trend reversal, this move risks being a temporary spike rather than a major breakout."

Viktoras Karapetjanc, expert at Traders Union, sees robust structural improvements for Aave. He emphasizes that protocol revenues flowing to DAO and token holders align incentives for future growth. Karapetjanc believes the upcoming automated buyback will boost long-term demand for AAVE and strengthen the bullish setup. Activity and whale engagement reinforce confidence in further upside. "With the bullish structure intact and innovative tokenomics incoming, I expect further growth and multiple strong setups for buyers here."

Short-term gains sustain despite stretched momentum and overbought signals

AAVE/USD is trading above both the 20-day and 50-day moving averages ($72.10 and $80.37), which signals strong short- to medium-term momentum. However, the pair remains below the 200-day moving average at $116.17, keeping the long-term trend bearish. Key resistance sits at $97.46, while support is found at $92.56, with the distant Ichimoku Kijun offering further support at $78.03. Momentum signals are bullish: the MACD is neutral, the ADX is at a buy, and the Awesome Oscillator also supports ongoing upside pressure. Multiple oscillators indicate overbought conditions, with the RSI at 72.17 (buy), Stochastic RSI fully overbought at 100, and the CCI elevated at 214.67. Bull/Bear Power is strongly positive at 20.37, while intraday volatility stands at 5.29%. Current trading is near session highs, with a strong upside gap bolstering short-term bullish sentiment but warning that momentum may be stretched.

Earlier, analysts noted that recent governance changes and buyback clarity had improved sentiment and supported a bullish outlook for Aave. The latest confirmation of protocol revenue redirection and automated buybacks, alongside surging on-chain activity, reinforces this constructive view, with a breakout above $97.46 now emerging as the key trigger for further 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

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