Aave AAVE is currently trading at $122.55 on Thursday, down 3.46% from the previous day, as 24-hour trading volume rose 13.57% to $384.26 million, according to CoinMarketCap. Over the past week, the token has gained 12.57%, signaling a tentative recovery after a sharp correction that pushed prices toward a historically strong demand zone near $100–$105.
Technical Structure Remains Bearish
Crypto analysts at BITmarkets note that renewed buying interest has returned following last week’s selloff, although the broader technical structure remains bearish. Daily charts continue to show lower highs and lower lows, with price failing to reclaim the $170–$180 resistance zone. The breakdown below $150 accelerated selling pressure, confirming that the market is still dominated by bears.
The immediate hurdle for AAVE lies between $125 and $130, where the token is currently consolidating. This zone, which previously acted as minor support, now functions as short-term resistance. Analysts warn that a failure to break above this range could trigger further sideways movement or a retest of the $110–$100 support band.
However, the swift bounce from the $100–$105 demand zone indicates short-term accumulation and emerging buyer interest. If bulls establish momentum above $130, potential upside targets include $145–$150, followed by the stronger resistance range at $165–$170. Market watchers caution that the rebound appears corrective rather than trend-reversing, given the persistent downtrend and lack of sustained momentum.
Grayscale Files for AAVE ETF Approval
Adding a potential market catalyst, Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to convert its closed-end AAVE trust into an exchange-traded fund (ETF). If approved, this conversion would allow investors to gain regulated, liquid exposure to AAVE via a listed vehicle on NYSE Arca, replacing the private trust structure.
Under the proposal, the ETF would charge a 2.5% sponsor fee, payable in AAVE, with Coinbase serving as custodian and prime broker. The move mirrors Grayscale’s earlier ETF transitions, which aimed to reduce discounts to net asset value and expand market access. Other asset managers, including Bitwise, have also filed for AAVE-linked products, signaling growing demand for regulated exposure to DeFi tokens.
Strategic Implications: AAVE is the native token of one of the largest decentralized lending protocols, with value closely tied to on-chain lending activity, governance participation, and total value locked. If the SEC approves the ETF, U.S. investors could gain easier access to the token, institutional participation may increase, and price volatility may moderate over time. Regulatory scrutiny and market fee competition will remain important factors shaping investor response.
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