AAVE Nears $190 as Short Liquidations Reach $3.26 Million
AAVE climbed toward $190 on Oct. 2 as a sharp rise in the token’s price triggered about $3.26 million in short liquidations over 24 hours, according to Coinglass data.
The liquidations accounted for roughly 85% of the $3.82 million total recorded across AAVE derivatives markets, indicating that bearish positions bore most of the impact during the advance.
AAVE was trading around $185-$186 on Oct. 2, up about 13% over 24 hours and more than 26% over seven days. Futures trading volume reached approximately $1.09 billion, while open interest stood at about $535 million.
The liquidation figures show forced closures of short positions but do not establish how much additional buying pressure those liquidations generated or their specific effect on AAVE’s price.
AAVE Derivatives Activity Accelerates
The increase in derivatives activity came as AAVE extended a recovery that began from levels around $120 in September. On the daily chart, the token formed a series of higher highs before approaching $188, with trading volume rising alongside the breakout.
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| Source: TradingView |
AAVE also moved above its major moving averages during the advance. Its relative strength index approached overbought territory, while the token’s gains over the previous 90 days had exceeded 100%.
The $190 level represents a psychological resistance area, with $200 emerging as the next notable level above it. On the downside, the previous breakout region around $170-$175 could provide a potential support area.
Aave Protocol Expansion Adds to Market Activity
The market move coincided with continued development of the Aave lending protocol. Aave Labs said in an Oct. 1 update that Aave V4 exceeded $1 billion in deposits during September.
The protocol has also expanded across additional networks, including Arc and Base. On those networks, an Equities Hub allows tokenized Coinbase equities to be used as collateral for borrowing.
Aave’s token buyback program is another factor surrounding the recent market activity. The program has an annual budget of $50 million, with weekly purchases ranging from $250,000 to $1.75 million depending on market conditions.
Separately, discussions about adding token burning to Aavenomics have drawn attention. However, no formal proposal or implementation timetable for a burning mechanism has been established, leaving it separate from the existing buyback program.
AAVE’s price advance therefore comes alongside higher derivatives activity, protocol expansion and the ongoing buyback program. Whether those developments translate into sustained buying pressure remains dependent on subsequent market activity.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.