Aave Governance Dispute Erases $500M in AAVE Value Amid Recovery Signs
- Governance Crisis Impact: The governance dispute between Aave Labs and the DAO resulted in approximately $500 million in AAVE market value losses; however, on-chain data indicates that large investors accumulated tokens during the price decline, reflecting confidence in the protocol.
- Deposit and Revenue Growth: Despite price volatility, Aave's deposits increased by about 60% year-over-year, with weekly revenues projected to reach record levels by the end of 2025, underscoring the protocol's robust fundamentals.
- Concentration of Holdings: The share of AAVE held by the top 100 addresses rose from 72% to 80%, as large wallets and founder Stani Kulechov bought during the dip, signaling a governance stress test rather than a collapse.
- Market Sentiment Shift: Aave Labs announced plans to share revenue from activities outside the core protocol with AAVE holders, receiving positive community feedback, which has led to an improvement in market sentiment, indicating that the governance crisis is viewed as part of the protocol's maturation process.
Get Real-Time Alerts for Any Crypto Movement
Technical Analysis for AAVE
Technical Sentiment Analysis for Aave (AAVE) As of , Aave (AAVE) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for AAVE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, AAVE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Aave (AAVE) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 23.027 | 57.638 | 91.127 | 125.738 | 159.227 | 193.838 | 227.327 |
| Fibonacci | 57.638 | 83.653 | 99.724 | 125.738 | 151.753 | 167.824 | 193.838 |
About AAVE
About the author
