Aave's token is trading above its 50-day exponential moving average at $90.80, but the broader trend remains bearish with the price below the 200-day EMA at $112.75. On-chain, the protocol is seeing record activity: Aave V3 on Monad has attracted more than $500 million in deposits over the past month, and V4 deposits hit a new all-time high of $350 million.
Record Deposits on Monad and V4
Deposits on Aave V3 deployed on the Monad network have surged past $500 million in the last 30 days. Active loans on that deployment now exceed $215 million. Meanwhile, Aave V4 deposits have climbed by more than $100 million in a month to a record $350 million. The V4 version is also offering a negative borrowing rate of -0.2% for holders of cbBTC, WBTC, WETH, and wstETH, meaning those borrowers get paid to take out loans.
That kind of incentive appears to be drawing capital, but the token price hasn't followed the same trajectory. AAVE is still below its 200-day EMA, and the technical indicators are pointing to continued weakness.
Price Signals Turn Mixed
Futures open interest for AAVE dropped more than 6% in 24 hours to $302.15 million. The funding rate has turned negative at -0.0046%, and the 24-hour long-to-short ratio fell to 0.9372, meaning there are now more short positions than longs. The MACD is declining below its signal line, and the RSI sits near 49 and is trending lower, showing bearish divergence even as the price tries to recover.
Key support sits at the 50-day EMA of $90.80. A decisive close below that level could trigger a drop of roughly 20% to $70.65, which was the low from June 18. On the upside, resistance is at $100, near the May 10 high of $103.51, forming a broader resistance zone between $100 and $103.51.
Key Levels to Watch
The immediate question is whether the $90.80 support holds. If it does, the token could attempt to break through the $100-$103.51 resistance zone. A sustained move above that range would open the door to the 200-day EMA at $112.75. If support fails, the path down to $70.65 becomes the likely scenario.
With on-chain deposits growing and the price stuck below key moving averages, the next few sessions will determine which direction AAVE takes. Traders will be watching the $90.80 level closely. A close below it could send AAVE toward $70.65, while a break above $100-$103.51 would target $112.75.
