AAVE price is showing signs of recovery after a prolonged downtrend, with crypto analysts identifying the $121–$122 area as an important support zone. The token is now testing the $136–$145 resistance region, while a sustained break above $145 could open the way toward the $180–$190 zone.
The technical setup comes as Aave records stronger activity across its latest V4 deployment. Aave V4 recently crossed $1 billion in deposits, marking a new all-time high and adding fundamental context to the AAVE price outlook.
AAVE Price Tests Key $136–$145 Resistance
Analyst Crypto With Gopal’s analysis points to a recovery structure on the daily AAVE/USDT chart following an extended period of weakness. According to the analyst, AAVE had reclaimed the $121–$122 area and was trading near $136.50 while approaching the next major resistance zone.
The $136–$145 region is now a key area for the AAVE price. A decisive move above $145 could strengthen the recovery structure and bring the next target zone between $180 and $190 into focus.
However, the resistance level remains important because a rejection could keep AAVE within its current trading range rather than confirming a broader recovery.
Source: Analyst Crypto With Gopal X Post
On the downside, the $121.80 area is the main support highlighted in the analysis. Holding above this level would preserve the recovery structure described by the analyst, while a sustained breakdown could weaken the bullish setup.
Beyond the $180–$190 area, the analyst identifies $300 as a major resistance level. This makes the current price region an important technical area as traders monitor whether AAVE can convert the recent recovery into a larger trend.
Aave V4 Crosses $1 Billion in Deposits
The AAVE price setup is also developing alongside stronger protocol activity. Aave V4 crossed $1 billion in deposits on September 16, setting a new all-time high for the V4 deployment.
According to recent data on governance, deposit balance was already $708.6 million in six hubs as of September 16, after a rise of 23% compared to the previous one.
This growth was due to activity within several V4 hubs. Ethereum Core was still the largest component, but the recently introduced Arc hub also brought its share of USDC deposits. Several reserve assets were close to hitting their cap limits, and there were suggestions for increasing them.
This growth is important for AAVE because the coin is tied to the Aave protocol in general and not just the fluctuations in the market. An increase in deposits means that more money is being moved around within the lending protocol, but growth in the protocol doesn’t mean that there will be a corresponding increase in the AAVE price right away.
Aave Labs had previously announced in their August developer’s update that V4 had exceeded $800 million worth of deposits and set a record for the number of active loans, showing that the expansion was already underway before the latest $1 billion milestone.
Also Read: Avalanche Builds on $20M Deposits With Strong Aave RWA Hub
Why Does This Matter for AAVE Price?
The combination of improving technical structure and expanding V4 activity gives traders two separate factors to monitor.
Technically, $121 is still the crucial level pointed out by Crypto With Gopal. Staying above this support will preserve the pattern of the upward correction, and breaking $145 is going to be the next step that should be made by AAVE before reaching the next bullish zone.
Fundamentally, the development of version 4 suggests an increase in the utilization of Aave’s lending platform. The recent governance changes demonstrate that deposits grew from $577.1m to $708.6m. This means that there were flows to USDC, WETH, USDG, and weETH markets.
The Aave V4 design is also growing beyond its initial implementation phase. Aave implemented the V4 version on Avalanche in July, deploying their Hub and Spoke design, which features a liquidity hub and various markets.
However, further expansion might offer some more activity on the network, but the impact on the AAVE price would still be contingent on the liquidity of the market and other conditions within the crypto market.
What Happens Next for AAVE Price?
The price of AAVE is now set to face its next key resistance at $145. Clearing that mark will add strength to the recovery setup as indicated by Crypto With Gopal and put the range of $180-$190 in focus.
Failure to push above $145 may see the spotlight falling back on the $121-$122 support zone. If AAVE can defend it, then the recovery setup remains valid but failing it may be a bearish warning sign.
On the other hand, there is also the matter of the V4 expansion in Aave, which represents another important development for tracking. Depositing above $1 billion and growth in hubs and markets means that activity related to the newer structure continues to increase.
As for the AAVE price, the critical issue will be whether increased activity in the protocol can continue amid a breakout on a technical level. For that reason, traders will need to watch the $145 resistance and the $121 support level.
Also Read: AVAX Price Eyes $60 as Falling Wedge Breakout Meets Aave RWA Expansion
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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