Aave developers have confirmed a slow, managed transition from V3 to the new V4 protocol, with both versions running concurrently to protect liquidity stability. Technical analysis shows the AAVE token is testing critical support near a key demand zone between $95 and $105, an area that historically provided resistance but is now acting as support.
The roadmap for implementing Aave V4 is progressing slowly, with developers confirming V3 will continue operating normally after the new version’s release. In a post, contributor Expert Kolten wrote on X that the ecosystem would evolve gradually without a sudden protocol switch. The team is researching liquidity migration tools to allow users to move funds without closing positions, though this may not be available immediately.
The V4 design is built upon years of engineering experience from previous versions, incorporating feedback from partners and developers. Its launch will be gradual, with initial deposit capacities increasing as performance is proven and more collateral is introduced. Some community members, as noted online, emphasize that maintaining the protocol’s total value locked—over $20 billion across chains—is the most crucial migration element.
Market attention is focused on the AAVE token’s price structure, which is testing key support levels. Crypto investor Sjuul noted the asset is interacting with both diagonal and horizontal support on the 3-day chart. A significant area of demand exists between $95 and $105, a zone that previously acted as resistance.
If the price remains above the $100 level, traders may watch for a move toward the $150 to $180 range. A close below this major support zone, however, could see the price decline toward the $70 to $80 area.
