AAVE gains 13% as the protocol’s fundamentals strengthen: Is $100 next?

AAVE rallied more than 13% over the past 24 hours as investors responded to fresh developments surrounding the protocol’s long-term tokenomics. 

Trading volume climbed above $546.6 million, while the market capitalization reached $1.44 billion, reflecting stronger participation across the market. 

The rally followed comments from Aave founder Stani Kulechov, who dismissed claims that Aave Labs intended to sell AAVE tokens at a significant 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 buyback mechanism. 

Exchange reserves increased despite stronger demand

While sentiment improved, Exchange Reserve USD also climbed 16.97% to $229.49 million, indicating that more AAVE moved onto exchange wallets. 

Such inflows generally increase the amount of tokens readily available for trading and can raise the possibility of profit-taking after a strong rally. 

However, buyers absorbed that additional supply without allowing the price to surrender its recent gains. 

The balance suggested demand remained healthy even as exchange liquidity expanded. The divergence between rising reserves and sustained price strength showed that bullish conviction outweighed immediate selling pressure. 

Despite that, continued reserve growth would remain worth monitoring because additional exchange inflows could eventually slow the recovery if buying demand weaken.

Can AAVE finally reclaim the $100 barrier?

AAVE recovered from its June low near $60 and reclaimed the $90 support level before advancing toward the major 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 has continued to build. 

The $100 area remains the most significant technical barrier because it rejected previous recovery attempts earlier this year. 

A successful move above that level would expose the next resistance around $115. However, another rejection could encourage short-term consolidation before buyers attempt another breakout.

Liquidity favors another test of resistance

The Liquidation Heatmap showed the largest concentration of liquidity around the $90 region, almost matching AAVE’s trading price. 

As long as buyers defended the $90 level, the nearby liquidity could provide the foundation for another advance toward the heavier liquidation clusters between $95 and $100. 

These overhead pools represent the next major liquidity target and align closely with the daily supply zone. 

If buyers absorb selling pressure around that region, the price could extend toward $100 before attempting a breakout. 

A failure to hold $90 would weaken that bullish structure and could delay the next attempt higher.

Final Summary

• Rising exchange reserves increased sell-side liquidity, yet buyers continued defending the $90 support zone.
• AAVE now tests major resistance, with $100 remaining the key breakout level to watch.