AAVE Nears $190 as Short Liquidations Reach $3.26 Million

What to Know

• AAVE gained roughly 13% as short liquidations reached $3.26 million and futures volume totaled approximately $1.09 billion over 24 hours.
• Aave V4 surpassed $1 billion in deposits during September while expanding to Arc and Base with tokenized equity collateral support.
• Aave’s $50 million annual buyback program accompanies the rally as AAVE faces $190 resistance and potential support around $170–$175 levels.

 

AAVE’s rally has wiped out millions in bearish positions as rising derivatives activity carries the token toward $190. According to Coinglass data, short liquidations reached approximately $3.26 million, dominating the $3.82 million total recorded over 24 hours.

AAVE traded around $185–$186 on October 2, gaining roughly 13% over 24 hours and exceeding 26% over seven days. Meanwhile, futures trading volume reached approximately $1.09 billion, while open interest climbed to about $535 million.

Short positions accounted for approximately 85% of total liquidations, highlighting the pressure rising prices placed on bearish traders. Forced position closures may have contributed buying pressure, although the figures do not establish their price impact.

Alongside the trading increase, Aave reported progress in its lending protocol, including higher deposits and deployments across additional networks. According to Aave Labs’ October 1 update, Aave V4 surpassed $1 billion in deposits during September. Its expansion included Arc and Base, where an Equities Hub allows tokenized Coinbase equities to serve as borrowing collateral.

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Buybacks and Technical Levels Shape AAVE’s Market Outlook

Aave’s token buyback program provides another development alongside the rally, operating with an annual budget of $50 million. Weekly purchases range from $250,000 to $1.75 million, with market conditions determining the amount acquired.

Separately, discussion around adding token burning to Aavenomics has attracted attention, although no formal proposal or implementation schedule exists. The operating buyback program therefore remains distinct from a potential burning mechanism that has not reached formal approval.

The daily chart analysis shows higher highs from September’s recovery area around $120, culminating in a move toward $188. Trading volume increased alongside the breakout, while AAVE extended above its major moving averages during the advance.

Its relative strength index approached overbought territory, with market figures showing gains exceeding 100% over the past 90 days. AAVE faces psychological resistance at $190, followed by $200, while the former breakout zone around $170–$175 marks potential support. Protocol expansion, buybacks and short liquidations accompany AAVE’s rally, with traders watching whether buying pressure supports further gains.

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