Aave's Price Momentum Meets Crucial Test as Deposits Surpass $3.8 Trillion

Aave's recent price pullback from its all-time high of $188 is putting the token's recent gains to the test. The price of Aave initially broke above $176, but has since retracted back down towards $180.51, leaving investors wondering if the buyers can maintain the recent momentum.

The rising trendline connecting the lower highs since September 16th, when the token bottomed at $111, continues to indicate a bullish structure. Additionally, the Relative Strength Index (RSI) stood at 68 as of writing, indicating strong momentum without reaching overbought territory.

Aave's growth is evident not just in its price momentum, but also in its cumulative deposits, which have surpassed $3.8 trillion. The token's strongest period of deposit growth was after 2024, with cumulative deposits reaching $2 trillion and then $3 trillion in 2025 and 2026.

Aave is also transitioning from a protocol to a defined legal entity, with the establishment of a foundation to hold all of Aave's intellectual property. The proposal allows for the creation of this new structure without passing any of the existing assets to it, limiting any immediate impacts.