Aave is drawing fresh attention as buyback activity climbs to new highs. DeFi Andree pointed out that Aave’s monthly buybacks have now moved beyond $6 million, a clear step up compared with the $3 million to $4.5 million range seen between April and November. December and January held even firmer, landing near $6.4 million to $6.5 million.
Source: X
The reason this is important is that buybacks represent more than just hype. They represent the protocol for making real money from usage. Borrowing, lending, and usage are becoming revenue streams, and being used to buy AAVE is, according to Andree, creating a strong bid that can help establish a price floor, not based on speculation but on demand.
The price movement is also beginning to align with the better fundamentals. Trader Michaël van de Poppe pointed out that AAVE has finally broken out strongly from the current region.
He believes this breakout is well-deserved, considering the strong foundation that AAVE has established over the years. This is a sentiment shift. Traders have been observing the market for signs that the selling pressure is easing.
On Binance’s weekly chart for AAVE/USDT, the picture is clear. Aave had a strong bullish momentum that reached its peak in early 2025, with prices nearing the $350-$400 region. This was after a period of accumulation in 2023, when volatility was low before the formation of higher lows in 2024.
When the breakout occurred, the volume increased, and the size of the candles expanded, indicating heavy participation. However, towards the end of the uptrend, signs of exhaustion began to appear, as indicated by long wicks and large price movements, which indicated distribution.
Source: X
Since then, the trend has turned bearish, with lower highs and lower lows, indicating a medium-term trend. The moving average that previously supported the trend has also turned bearish and is now a resistance level, preventing any attempts at a rebound.
Currently, the price is entering a large demand area around $105-$120. This area was a resistance zone before, and it turned into a support zone during the late 2024 breakout. Buyers tend to enter here due to trading memory. A long lower wick indicates early buying, but we will need higher weekly closes to confirm this.
Volume has increased during the fall, but not to the point of showing panic selling. The RSI has retreated from the overbought region, so the momentum has reset.
If there is divergence in the RSI, this could help form a bottoming argument. However, a weekly close below $105 could lead to a test of the support zone around $70-$80 for AAVE.
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