Aave Tests Key Support as Deposits Near $4 Trillion Milestone

Aave [$AAVE] has recently experienced a pullback from its peak of approximately $188, testing a crucial breakout level that fueled its previous price surge. After briefly surpassing $176, the token retraced to around $180.51 but managed to stay above the prior resistance level. Holding above $176 is essential for maintaining the upward momentum, as a drop below this threshold could signal a shift in market sentiment.

The broader trend for Aave remains bullish, with each breakout successfully retested. The Relative Strength Index (RSI) currently stands near 68, indicating strong momentum without being overbought. If the price dips below $176, the next support levels could be $156-$158.

Aave's growth extends beyond price action, with cumulative deposits reaching nearly $4 trillion. Deposit growth accelerated significantly after 2024, with the platform now holding over $3.8 trillion in deposits by mid-2026. This substantial deposit base enhances Aave's competitive advantage in the lending market.

Aave is also undergoing a structural transition, proposing a new ownership framework. The protocol plans to establish a foundation to hold its intellectual property, although token holders will not gain direct ownership of trademarks or domain names. Phase 1 of the vote focuses on creating this structure without immediate asset transfers, setting the stage for future governance decisions.