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The AAve price is up 2% in the last 24 hours as of 01:13 a.m. EST with the daily trading volume down 3% to $391 million.
This comes as Aave founder and CEO Stani Kulechov deny claims that he purchased $15 million in AAVE tokens to sway a controversial community vote. Kulechov emphasized that the tokens were not used in the recent vote and that his investment reflects personal conviction in Aave rather than an attempt to influence governance.
He also acknowledged that Aave Labs has not clearly communicated the economic alignment between the company and AAVE token holders, promising greater transparency in the future regarding how Aave Labs’ products create value for the DAO and its members.
The controversy arose around a proposal to transfer Aave’s brand assets to the decentralized autonomous organization (DAO), which governs the Aave protocol. The proposal followed claims by DAO member EzR3aL that fees from a recent integration with DEX aggregator CoW Swap were directed to an Aave Labs-controlled wallet instead of the DAO.
This sparked significant debate within the community, with many arguing that the DAO should have been consulted before fees were redirected. The community vote resulted in over 55% opposing the proposal, with more than 41% abstaining and only 3.5% in favor. Several members criticized the process, saying it was rushed and bypassed normal governance procedures.
Notably, Ernesto Boado, former Aave Labs CTO, was listed as the proposal’s author but claimed it was submitted without his knowledge or consent and that he would not have approved its publication. The situation highlights ongoing tensions between Aave Labs and the DAO over governance, transparency, and intellectual property control.
The daily chart of AAVE/USDT shows the price currently testing a key support level at around $155. The overall trend has been bearish after forming an inverted cup and handle pattern, which usually signals further downside if the support breaks.
Earlier in the year, AAVE found strong support near $150, which held several times between March and May. This led to a recovery above $350, forming a rounded top. The rounded top indicates that buying momentum weakened after a long upward move, setting the stage for the recent decline.
Currently, the RSI (Relative Strength Index) is at 38, below the neutral 50 level. This indicates that selling pressure is stronger than buying, but the token is not yet oversold (below 30), meaning there could still be more downward movement if the support fails. A rebound at this level could offer short-term buying opportunities.
If the $155 support holds, AAVE could bounce back toward the $200-$220 range, where previous resistance aligns with the top of the handle. However, if the support breaks, the next major target is around $120, as indicated on the chart.
The inverted cup and handle points to potential further losses, while the RSI shows weakening momentum but no extreme selling yet. A break could lead to further downside toward $120, while a strong rebound may allow for a short-term recovery. Proper risk management is essential due to the volatility of DeFi tokens, especially when prices approach significant historical support.
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