AAVE edges higher with deposit base boosted by v4 Stable Vaults: weekly forecast

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Aave rises 6.46% this week

Highlights

AAVE trades in a short-term recovery phase but remains constrained by medium- and long-term technical resistance levels.
Momentum signals remain decisively bearish, with weekly indicators pointing to weak trend strength despite recent price gains.
AAVE is likely to stay range-bound between $87 and $106, with downside risk outweighing further price upside in the coming week.

Milestone deposit growth as v4 launch and governance overhaul boost sentiment

Aave has reached a significant milestone with its v4 update, seeing total deposits surpass $300 million, representing a 50% increase in its deposit base over the past month. The v4 launch introduced Stable Vaults, providing fixed-rate stablecoin yields and improved liquidity management for users. In addition, Aave DAO implemented a new governance framework that shortens proposal timelines and standardizes the review process.

Mixed technical signals this week as short-term recovery meets persistent resistance

On the weekly timeframe, technical signals for AAVE remain mixed. While the price holds above the MA-20, persistent resistance above from the MA-50 and MA-200 suggests the overall trend is still downward. Weekly indicators such as the MACD and ADX remain on 'Sell,' with the RSI at 44.67 showing weak bullish momentum and Stochastic RSI and Bull/Bear Power signaling overbought conditions. The Commodity Channel Index is neutral, and volatility is elevated at 13.14%, reflecting a market driven by short-term buyer interest but with little confirmation from broader trend indicators.

Range-bound outlook for next week amid lingering bearish technicals

For the next 7 days, AAVE is expected to trade in a range between $87.00 and $106.00, in line with its recent weekly volatility. There is a low probability of a sustained move higher, as key weekly technical indicators remain in bearish or neutral territory. The base scenario is for AAVE to remain range-bound within $87 and $106. Bullish momentum would require a breakout above $106, while a move below $87 would strengthen downside risks and could prompt a test of lower support levels.

Earlier, analysts noted that Aave was experiencing a shift toward positive sentiment and recovering technical strength following increased liquidity and protocol upgrades. The latest price action and feature rollouts reinforce this trend but, given persisting medium- and long-term resistance, traders should focus on the $106 level as a potential breakout point that could alter the prevailing range-bound outlook.

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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