AAVE, the Native Token of the Leading Decentralized Finance Platform Aave, Crossed the $180 Mark on March 21

The global crypto market has been stable recently, with Bitcoin briefly going above $86,000 yesterday before settling around $84,000.

The price of AAVE, the native token of leading decentralized finance platform Aave, crossed the $180 mark on March 21. According to CoinMarketCap, this represents a 1.74% increase in the last 24 hours. Over the past week, the AAVE price has risen by 8.67%.

Why Is AAVE Crypto Rising Today?

The global crypto market has been performing in a holding pattern recently, with Bitcoin briefly going above $86,000 yesterday.

The Aavenomics governance proposal just passed its vote and will introduce a new “fee switch” mechanism for the Aave protocol.

Quorum was reached on Aavenomics,If the implementation, review & AIP vote is done on time, $AAVE buybacks will likely start this month.Just Use Aave.

Proposed by the Aave Chan Initiative (ACI), Aavenomics allows the protocol to share its revenue with users, especially those who stake or lock their AAVE tokens.

This proposal will see a finance committee use extra revenue to buy back $1 million of AAVE tokens weekly for six months. These tokens will be distributed to AAVE holders who have locked their tokens, encouraging their long-term involvement in the Aave ecosystem.

This buyback-and-distribute plan is a significant change for AAVE’s tokenomics. By reducing the number of tokens in circulation, the protocol aims to increase the token’s price while rewarding loyal users.

Aave co-founder Stani Kulechov described Aavenomics as a “fee switch on steroids,” showcasing its potential to improve the protocol’s value. Marc Zeller, a key member of the ACI, highlighted it as the most critical proposal in the project’s history, adding that it took five years to develop.

Aapenomics update.This is Fee Switch on steroids.

AAVE Price Prediction: Falling Wedge Signals Bullish Reversal

The recent price movement of Aave (AAVE) aligns with a bullish forecast by crypto analyst Jonathan Carter on March 20.

Carter identified a falling wedge pattern on AAVE’s 12-hour chart, which typically signals a price increase due to slowing selling pressure and increasing buyer interest.

#AAVEToken is forming a classic falling wedge pattern on the 12H chart which typically signals bullish reversal?Price approaching the upper resistance trendline with positive RSI divergence formingSuccessful breakout could propel price towards targets at $193, $230,… pic.twitter.com/C9oK9qGpxY

Carter mentioned that AAVE was “approaching the upper resistance trendline” and observed a bullish divergence in the RSI, indicating decreasing bearish strength. He predicts the AAVE price could rise significantly after breaking through the resistance, potentially reaching new highs like $193 and beyond.

The price of AAVE briefly touched $182.77 on March 21, confirming a slight breach in the resistance zone of $180 to $190. Although the token has pulled back slightly from here, this breach verifies the bear reversal expectation, considering AAVE is only about $12.48 away from achieving the first target of $193.

If more buyers join, AAVE could reach even higher targets, potentially achieving gains of up to 86% if it hits $335. Investors should monitor a critical support level around $150-$160, as a price drop below this range might signal a change in the current trend.