AAVE at $180, are you chasing it?
The governance proposal aims to transfer all trademarks and IP to the DAO, and Aavenomics 3.0 is still evaluating a permanent burn mechanism—once the news broke, AAVE surged from 159 to 187 in two days, an 18% spike. But just now, it dropped back to 180, with contract volume approaching $1.1 billion. Is this truly a narrative upgrade, or just a sell-off after a squeeze?
Let's look at the surface: good news landed, but the price retraced.
On October 2, it peaked at 187.5, today it dropped to a low of 176, now hovering around 180 with repeated friction. The daily RSI is 72, overbought; ADX at 41 indicates the trend is still intact; after the 4-hour peak, it formed a flag pattern and pulled back. The candlesticks tell you: 175-176 is the first daily support, 170 is the starting zone; all technical indicators say one thing: the trend is unbroken, but don’t chase recklessly in the middle.
First thing: what rose this time wasn’t the price, but "ownership."
On October 2, Aave Labs dropped a bombshell: establishing a Cayman memberless foundation to transfer trademarks, domains, and protocol IP all under the DAO’s name.
Don’t get it? Here’s the plain talk:
Previously, AAVE token holders were just "users," now they become "shareholders." Who owns the trademark, who holds the IP, and whether it can be sold—all decided by token holders. The foundation has no voting or veto rights; board appointments and charter amendments remain with the DAO.
What level of event is this?
This is the first time in DeFi history that a leading protocol truly returns legal ownership of core assets to its token holders. Along with Stani’s mention of the Aavenomics 3.0 permanent burn mechanism—if implemented, it would be a nuclear-level upgrade to the supply narrative.
But remember one thing:
The current burn is just an "expectation," not a "fact." Expectations can pump or dump the price.
Second thing: the protocol itself is stronger than you think.
Don’t just focus on the governance proposal; AAVE’s fundamentals are the real trump card:
V4 deposits surpassed $1 billion for the first time, active loans at $310 million
New launches on Arc, Base live, Coinbase tokenized stocks can be used as collateral via Equities Hub
Officially released MCP service, AI agents can directly read the protocol
Ongoing buybacks: DAO annual budget $50 million, weekly buys between $250k and $1.75 million
Circulating supply 15.4 million, total supply 16 million, market cap $2.5-2.8 billion. Still far from the all-time high of 660, a huge gap remains.
Plain talk:
AAVE isn’t a meme; it’s the "central bank" of DeFi. You can’t avoid it when depositing, borrowing, or liquidating. Such a protocol has buyers when it dips and sellers reluctant to part when it rises.
Third thing: a technical warning signal to watch.
From October 1-2, it rose from 159 to 187, an 18% gain, but contract volume and short liquidations were high, with futures volume nearing $1.1 billion.
The good news is real, but part of the rise was squeezed out.
That’s why it’s normal to fail above 187 and fall back to 180. Daily RSI 72 is overbought; 15-minute RSI back to 52; short-term bulls are resting. Structurally, this is the first decent pullback after the main rise; 180 is right in the middle of the retracement—risk/reward is average, not the best entry point.
Key levels to note:
Resistance: 183-185 → 187.5-188 → 196 → 200 (sentiment threshold)
Support: 176-175 → 170 (starting zone) → 162
A daily close below 175 signals weakness; a confirmed break below 170 means a "deeper correction."
Bull vs. bear, judge for yourself:
On one side:
IP ownership to DAO proposal, DeFi’s first ownership revolution
Aavenomics 3.0 burn mechanism on the way
V4 deposits over $1 billion, Base/Arc/Coinbase collateral fully rolled out
$50 million annual buyback supporting the floor
Clearly stronger than BTC, event-driven independent rally
On the other side:
Daily RSI 72 overbought, 18% rise in two days needs digestion
Squeeze component in gains above 187
BTC stuck in 83,000-87,200 range; October 14 inflation data is a hard test
Governance vote rejection or major clause changes would immediately reprice the narrative
Trading strategy (no nonsense):
Focus on structure, not calls. Single trade risk within 1% of account; AAVE daily volatility $8-10 is normal.
Buy on pullback (more aligned with daily):
Don’t chase at 180. Prefer to wait for a long lower shadow or 4-hour reclaim at 176-175, then scale in with stop loss below 172. First target 185, if it holds, look to 187.5/196. Only consider breakout trades if volume closes above 188, stop loss below 183, target 196-200.
Short-term shorts (only on resistance):
If volume spikes with upper wick at 185-188 and 4-hour fails to reclaim, light short with stop loss above 190, target 176/175. Don’t guess tops around 180; RSI overbought can still dull.
Invalidation:
Daily close below 175 without reclaim means exit longs, watch 170/162. If BTC breaks below 83,100 effectively, AAVE’s relative strength will be suppressed; reduce leverage.
AAVE now is like UNI in 2020—
Everyone thought "governance tokens are useless," then DeFi Summer came and it took off.
AAVE at 180, you think it’s risen too much.
When it returns to 660, will you regret not buying the 175 pullback?
What you lack isn’t opportunity, but patience to hold the opportunity. $BTC$ETH$AAVE #US September nonfarm added only 29,000 jobs, unemployment rose to 4.2%
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