The recent stability in the AAVE price has led to speculation that a local bottom may be forming at $88.31. According to market analysts, this stabilization could be attributed to the RSI divergence on the 4H timeframe, which indicates weakening downside momentum for the cryptocurrency.
AAVE is currently trading within a long-term descending channel since late 2024, and its price is retesting a key technical support zone. The lower boundary of this channel aligns with the value area low of a major daily range, forming strong confluence.
The data from Kolten highlights that Aave V4 has seen consistent loan growth since its launch, reflecting steady traction despite conservative borrowing and supply caps. This trend indicates potential for future gains, as more users turn towards Aave V4 as a platform.