AAVE is showing signs of a potential recovery as technical indicators suggest easing selling pressure. Meanwhile, rising demand for tokenized stocks as collateral on Aave V4 highlights growing adoption of decentralized lending and strengthens the connection between traditional financial markets and blockchain-based finance.
As of now, according to CoinMarketCap data, AAVE is trading at $151.41, with an increase of 2.32% over the past 24 hours and a decrease of 5.39% over the past week.
AAVE Price Prediction: Falling Wedge Signals Recovery Toward $303
Crypto analyst Don notes that AAVE is showing signs of a possible recovery after breaking out of a 229-day consolidation range. Following the breakout, the token pulled back from $188 to $156, forming a small falling wedge on the daily chart. This pattern could signal that selling pressure is easing ahead of another potential upward move.
A daily close above the falling wedge would strengthen the bullish setup, with the analyst identifying $183.60 as the first upside target. If buying momentum continues and AAVE clears this level, the price could extend its recovery toward $303.48, marking a potential continuation of the earlier breakout.
However, the $128 level remains a key support zone, aligning with the top of the previous consolidation range. A decline toward this area could test whether the breakout level can hold as support. If AAVE closes back inside the former range, the bullish setup would be invalidated, making the falling wedge trendline and price reaction around support critical levels to watch.
Aave V4 Sees Growing Demand for Tokenized Stock Collateral on Base
The data from Token Terminal further shows that Aave V4 is seeing increased adoption of tokenized stocks as collateral on Base, with 144 wallets now borrowing USDC against these assets. The number has climbed from just eight wallets on the product’s launch day on September 25, indicating growing participation in this lending use case.
These users have collectively deposited $9 million worth of Coinbase-issued tokenized stocks as collateral, including assets linked to Apple, Nvidia, and Tesla. Against these holdings, borrowers have taken out $3.8 million in USDC, allowing them to access liquidity without selling their stock-linked assets.
The activity highlights how tokenized equities can expand the role of traditional financial assets in decentralized finance (DeFi). By using tokenized stocks as collateral, eligible users can borrow stablecoins while retaining exposure to their underlying assets.
However, adoption and long-term growth will depend on market demand, collateral requirements, and the risks associated with tokenized assets and lending protocols.
