Aave’s AAVE token surged 8% on Friday, reaching an intraday high of $187.50 before stabilizing around $182. This price movement follows the release of a governance proposal by Aave Labs, sparking renewed interest among investors.
The proposal outlines the creation of a memberless foundation based in the Cayman Islands, tasked with managing Aave’s trademarks, domains, and intellectual property associated with the protocol. The first phase of this initiative focuses on incorporation and appointing an independent director and supervisor.
Significantly, under this plan, AAVE tokenholders will retain full governance rights, while the foundation itself will have no voting or veto powers in day-to-day operations. This structure ensures that decisions on listings, parameters, budgets, and service providers remain firmly in the hands of the tokenholders.
Founder Stani Kulechov emphasized that the proposal is part of the broader “Aave Will Win” framework, which aims to consolidate Aave’s assets under a single token. He clarified that any transfer of trademarks, domains, or codebase would require additional governance votes, ensuring transparency and accountability.
AAVE Tokenholders Maintain Governance Authority
The DAO will also have the authority to appoint or remove directors through formal proposals and will hold the final say on constitutional changes, IP sales, and any potential winding-up of the foundation. Quarterly reports will be published to keep tokenholders informed about the entity’s assets and legal matters.
During the recent rally, approximately $350,000 in short liquidations occurred across three exchanges. This surge follows a remarkable recovery from a low of around $60 in June, indicating strong market momentum.
Crypto analyst Crypto Patel has projected a bullish outlook for AAVE, noting that the token has risen 223% from its accumulation zone of $57-$67. He identified potential price targets of $208, $355, and even $1,000 for the upcoming 2026–2027 cycle based on favorable chart patterns.
Technical Analysis Points Toward $200
According to TradingView data, AAVE was trading at $181.66, reflecting a nearly 6% increase for the session, with the price fluctuating between $170.77 and $187.50. The daily MACD indicators remain positive, with the MACD line positioned above the signal line, while the 4-hour ADX reading has climbed to 40.62, signaling a robust upward trend.
Data from CoinGlass revealed a liquidation cluster just above the current market price, between $188 and $189. A breach of this level could trigger further buying pressure from short positions, potentially driving the price even higher.
Conversely, liquidation clusters below the market are identified near $178-$180 and $167-$168, which could pose risks for long positions in the event of a price pullback.
Michaël van de Poppe, another prominent analyst, commented on the current price structure, likening it to the pattern observed prior to AAVE’s late-2024 rally toward $400. He expressed optimism about seeing a similar movement before the year’s end.
This recent rally coincided with the announcement that Aave V4 has incorporated seven Coinbase tokenized stocks as collateral on Base, allowing eligible non-U.S. users to borrow USDC against tokens from major companies such as Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla.
Kulechov also mentioned that discussions are underway regarding a permanent token burn as part of Aavenomics 3.0. Currently, Aave’s buyback program operates with an annual budget of $50 million, with purchased tokens being allocated to the DAO’s reserve rather than being permanently removed from circulation.
