Defi lender aave token management It bounced more than 2% early Wednesday above $220, reversing early losses amid a fresh community proposal for a $50 million token purchase initiative.
The move followed a volatile session that saw prices swing more than 10% within a $22.55 intraday range, with a sharp rebound from a session low of $214.25, Coindesk Research’s analysis model showed. Alongside the price action, the token saw a 23.68% increase in trading volume compared to the weekly average. Despite the rebound, the token is still down 5% from Tuesday’s session.
While the move reflects the broader crypto market’s modest rebound from overnight lows, it also coincides with a new governance proposal that could re-establish AAVE’s long-term token economy.
The Aave Chan Initiative (ACI), led by Marc Zeller, suggested on Wednesday a permanent $50 million annual purchase program financed by the income of the lending protocol. The plan will expand AAVE’s current buyback scheme and allow adaptive weekly purchases of between $250,000 and $1.75 million worth of AAVE, depending on market conditions.
Proponents say the program will create consistent buying pressure, recycle idle Treasury assets and stabilize the dynamic token market. This marks a step towards institutionalizing “aavennomics” as a key part of the long-term model of the economic protocol.
Technical Analysis
Key levels of technical consolidation levels for AAVE, suggested by the Coindesk Research model. AAVE now faces near-term resistance at $236.80, with support holding between $215 and $220. Price action may remain range-bound unless management momentum or macro trends change demand.
- Support/Resistance: Key support holds at $215-217 zone with resistance at $236.80; New close support formed at $220 following a volume surge.
- Volume Analysis: 24-hour volume climbed 23.68% above the seven-day average with peak activity of 128,661 units on 22 October 11:00 representing 124% above the 24-hour simple moving average.
- Chart patterns: Range consolidation within the $22.55 trading range (10.1% volatility) with a dramatic intraday reversal from the $214.25 session low.
- Targets and Risk/Reward: Immediate resistance at $236.80 level with support confluence around $215-220 zone providing defined risk parameters for position management.
Disclaimer: Parts of this article were generated with help from AI tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, see Coindesk’s full AI policy.
