Technical analysts point to a possible stabilization for AAVE as it tests a key support zone between $113 and $123. However, the token’s broader structure remains bearish, with price action showing lower highs. Concurrently, reports of major technical builders leaving BGD Labs have raised governance concerns within the ecosystem.
Market analyst Michaël van de Poppe shared a bullish note, suggesting AAVE was showing early signs of recovery. He described a recent price drop as unnecessary, attributing it to external ecosystem movement rather than weak demand.
Price action is forming a higher low, a pattern that can precede trend reversals. The token has been in a correction phase since reaching the $360-$380 level.
The moving average continues to act as resistance above the current price. Momentum has declined significantly since a major sell-off in October.
AAVE is currently ranging in a significant demand area between $113 and $123. Buying activity there suggests selling pressure is being absorbed.
A break above the next resistance level of $140-$160 could signal a new trend. Momentum indicators like the RSI, however, remain in a neutral zone.
Separately, DeFi analyst Jordi stated that key technical minds from BGD Labs are exiting. These builders were instrumental in developing core protocol infrastructure.
This development is linked to strategic debates over the protocol’s development direction. Founder Stani Kulechov has faced social media criticism regarding funding and control discussions.
BGD Labs will open-source its work and assist with the transition for about two months. Traders and users are closely monitoring this governance risk.
