AAVE extended a powerful rally on Oct. 2, trading around $185–$186 and gaining roughly 13% in 24 hours, with the token up more than 26% over seven days. The move came as bearish positions were squeezed: Coinglass data showed short liquidations reached approximately $3.26 million, about 85% of the $3.82 million total liquidations recorded over 24 hours.
Derivatives activity surged alongside spot gains. Futures trading volume totaled approximately $1.09 billion, while open interest climbed to about $535 million. The concentration of forced short covering added to the bullish backdrop, though the data alone does not prove the exact price impact.
On the technical front, AAVE is approaching psychological resistance at $190, with a further hurdle at $200. The former breakout area around $170–$175 is viewed as support, and a deeper pullback could bring $162.50 into focus. Daily momentum remains positive, with the MACD line above its signal line and a rising histogram, while the 4-hour ADX reading of 40.62 indicated a strong trend. Liquidation clusters near $188–$189 sit just above the market and may act as a short-squeeze trigger if broken.
Fundamental developments are also supporting the narrative. Aave Labs reported that Aave V4 surpassed $1 billion in deposits during September. The protocol expanded to Arc and Base, where an Equities Hub now allows tokenized Coinbase equities to serve as borrowing collateral. Seven Coinbase tokenized stocks—Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla—were added as collateral on Aave V4 on Base. Eligible non-U.S. persons in permitted jurisdictions can borrow USDC against that tokenized equity exposure under Regulation S.
Aave’s revenue-funded buyback program remains active with a $50 million annual budget, and weekly purchases ranging from $250,000 to $1.75 million. Repurchased tokens currently go to the DAO’s Ecosystem Reserve, but founder Stani Kulechov said on Sep. 28 that a token burn is under consideration for Aavenomics 3.0. No formal burn proposal or implementation schedule has been approved.
Some analysts are watching for a breakout above $187.50–$190 as a path toward $200 and beyond. Michaël van de Poppe compared the current buildup to AAVE’s late-2024 breakout toward $400, while Crypto Patel outlined longer-term targets at $208, $355 and $1,000. Those remain speculative projections, with the immediate test centered on overhead resistance and the $175 support zone.
