Aave’s token, AAVE, saw a notable price jump of 19% over 24 hours on June 27, trading near $94.86. The move came after news that Kraken’s parent company, Payward, confirmed early talks to buy a stake in the Aave protocol. This fresh institutional attention aligns with an upcoming overhaul of Aave’s tokenomics plan, known as Aavenomics 3.0, expected later this year.
Has AAVE Broken Its Long-Term Downtrend?
The daily chart for AAVE shows a decisive break above a descending trendline that had capped every rally since January. The price cleared key Fibonacci levels, passing the 0.382 retracement at $80.85 and the 0.5 level at $87.98 in a single session. It closed well above the 20-day exponential moving average (EMA) at $78.15 and the 50-day EMA at $80.58. The next test is the 100-day EMA at $91.45, which sits just below the current price. Looking at the broader Fibonacci structure drawn from the April low to the May high, resistance is seen at $97 near the 0.618 level, then $105.28 at the 0.786 retracement. A full reclaim of the prior high near $118.23 would signal a structural trend change rather than just a relief bounce. Key support levels to watch are $87.98 and $80.85, with resistance at $97 and $105.28.
What Do AAVE Derivatives Say About This Rally?
Derivatives volume jumped 20.38% to $1.20 billion, while open interest surged 35.05% to $396.26 million. This combination points to fresh leveraged buying rather than just short covering. The long/short ratio sits at 0.8369, meaning shorts still outnumber longs slightly even after the rally. This leaves room for further squeezes if price keeps climbing. Liquidations over 24 hours hit $3.16 million, with shorts taking the bulk of the damage at $2.27 million against $882,510 for longs. Open interest has more than doubled in days, jumping from roughly $190 million to $396 million, showing real capital rotating into the trade rather than just existing positions getting marked up.
Why Is Wall Street Suddenly Interested In Aave?
CoinDesk reported that Kraken’s parent company, Payward, is in early talks to acquire a 15% equity stake in Aave Group at a $385 million valuation. The offer is structured as ETH and AAVE tokens worth roughly $71 million. Aave founder Stani Kulechov rejected any framing that this represented a discounted token sale, clarifying the talks concern company equity, not AAVE itself. Kulechov also unveiled Aavenomics 3.0, a tokenomics overhaul that routes all protocol and GHO stablecoin revenue to the DAO and AAVE holders. This is backed by an automated buyback mechanism and a discretionary $50 million annual buyback budget. Separately, Standard Chartered initiated coverage on AAVE with a $3,500 price target by 2030, citing the expected growth of tokenized real-world assets toward a $2.7 trillion market.
Aave Price Prediction: July 2026 Weekly Forecast
For July 2026, Aave’s price prediction involves both upside and downside targets. On the upside, if the current momentum holds and the token breaks above the $97 resistance, it could target the $105 level. A further push toward the $118 area would confirm a bullish trend change, potentially opening the door for higher levels above $130. However, if the rally falters and the price fails to hold support at $87.98, a pullback to the $80 level is possible. A more significant breakdown below $78 would suggest the downtrend is still intact, possibly leading to a retest of lower support around $70 or even the recent lows. The weekly forecast remains tied to the broader market sentiment and any further news on the Kraken deal or tokenomics updates.
