AAVE rose more than 13% in the past 24 hours as investors reacted to new developments surrounding the protocol’s long-term tokenomics.
Trading volume exceeded $546.6 million, while market capitalization reached $1.44 billion, reflecting stronger participation in the market.
The gathering followed comments from Aave founder Stani Kulechov, who dismissed claims that Aave Labs intended to sell AAVE tokens at a deep discount.
Instead, he reaffirmed that 100% of Aave Protocol and GHO revenue belongs to the AAVE token, while noting that the protocol currently generates approximately $134 million in annualized revenue for the Aave DAO.
He also revealed that Aavenomics 3.0 is under development and will introduce an automated redemption mechanism.
Foreign exchange reserves increased despite stronger demand
Even though the feeling has improved, USD foreign exchange reserve also climbed 16.97% to $229.49 million, indicating that more AAVE shifted to exchange wallets.
Such flows generally increase the amount of tokens readily available for trading and can increase the possibility of profiting after a strong rally.
However, buyers absorbed this additional supply without allowing the price to relinquish its recent gains.
The balance suggested that demand remained healthy even as foreign exchange liquidity increased. The divergence between increasing reserves and sustained price strength showed that bullish conviction outweighed immediate selling pressure.
Despite this, continued reserve growth would be worth monitoring, as additional foreign exchange inflows could potentially slow the recovery if purchasing demand weakens.
Can AAVE finally reclaim the $100 barrier?
AAVE recovered from its June low near $60 and reclaimed the $90 support level before advancing towards the main supply zone around $100.
The daily chart now shows a series of higher lows, highlighting a clear improvement in market structure after weeks of persistent selling.
Meanwhile, the Relative Strength Index (RSI) climbed to 69.22, placing it just below overbought territory and confirming that buying strength continued to build.
The $100 zone remains the most significant technical hurdle as it rejected previous recovery attempts earlier this year.
A successful move above this level would expose the next resistance around $115. However, another rejection could encourage near-term consolidation before buyers attempt another breakout.
Liquidity Favors Another Stress Test
The liquidation heatmap showed the greatest concentration of liquidity around the $90 region, almost matching the trading price of AAVE.
As long as buyers defend the $90 level, nearby liquidity could provide the basis for another advance into the heavier liquidation clusters between $95 and $100.
These overhead pools represent the next major liquidity focus and closely align with the daily supply zone.
If buyers absorb the selling pressure in this region, the price could reach $100 before attempting a breakout.
Failure to hold $90 would weaken this bullish structure and could delay the next attempt higher.
Final summary
- The increase in foreign exchange reserves increased liquidity on the sell side, but buyers continued to defend the $90 support zone.
- AAVE is now testing major resistance, with $100 remaining the key breakout level to watch.
