AAVE rallies as price stays above key moving averages

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Aave jumps 7.56% on protocol upgrades

Highlights

Aave completed its V3.8 security-focused upgrade across 15 markets, enhancing security and multi-chain capabilities after DAO approval.
Aave V4 user engagement accelerated, with Avalanche deposits at $225 million and total platform deposits over $1.75 billion.
AAVE/USD gained 7.56% to $108.86, showing near-term bullish momentum with an expected range of $100.43 to $117.29.

Security upgrade and user growth support Aave amid active risk management

Aave has completed its V3.8 security-focused upgrade across 15 Aave V3 markets on major blockchains following approval by the Aave DAO, significantly enhancing the protocol’s security posture and broadening its multi-chain functionality, according to Digitaltoday Co. This reinforcement of the platform may improve user confidence and stimulate greater activity across supported ecosystems. Recent protocol activity included roughly $39 million in loan liquidations, as reported by Chaincatcher, which reflects active risk management amid market volatility. Meanwhile, Aave V4 has seen surging user engagement with deposits on Avalanche reaching $225 million and total deposits on the platform climbing past $1.75 billion, both signaling expanded network usage, according to Tokenpost and Coinfomania.

Bullish momentum holds as major resistance and overbought signals emerge

On the hourly chart, $AAVE continues to trade above both its MA-20 and MA-50, with the MA-200 just overhead serving as a key resistance level. The Ichimoku Kijun line at $102.65 acts as immediate support for the current structure. MACD and ADX signal bullish momentum, while RSI and CCI remain neutral. The Stochastic RSI is currently overbought, highlighting a risk of short-term pullback, but no reversal is yet confirmed. Bull/Bear Power stands positive at 2.18, consistent with ongoing buyer dominance, while the Awesome Oscillator is neutral and does not reinforce the prevailing trend.

Sideways range likely as breakout odds favor further upside

In the short term, the expected trading range for AAVE/USD is $100.43 to $117.29, reflecting a typical volatility band relative to current levels. The baseline scenario anticipates sideways movement within this corridor, with a 64% probability of an upward breakout. A move above resistance could unlock further upside toward the upper bound of the range, while a sustained drop below immediate support may set the stage for increased short-term downward pressure.

Viktoras Karapetjanc, expert at Traders Union, sees strong fundamental momentum for Aave as the protocol implements its V3.8 security upgrade and records all-time high deposits. He notes that these developments signal growing user confidence and expand Aave’s relevance across multiple chains. Recent loan liquidations show the platform’s effective risk management even in volatile market conditions. Technicals confirm bullish momentum, with key support holding and upside still intact. "As protocol upgrades and user deposits accelerate, I believe Aave has both the sentiment and framework in place to sustain further gains."

Earlier, analysts noted that Aave was experiencing persistent downside pressure, with technical indicators highlighting continued vulnerability amid sustained declines. The current rebound above key moving averages, coupled with heightened volatility and active protocol upgrades, signals a potential shift in momentum, making the $100.43–$117.29 range an important zone for traders to monitor in the near term.

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.