Aave V4 deposits hit $1 billion, AAVE tests $145 resistance zone

AAVE price action and resistance levels

Technical analysis from Crypto With Gopal highlighted that AAVE has reclaimed the $121–$122 support level and is now moving toward what appears to be an important resistance region. The daily chart indicates that AAVE was trading near $136.50, approaching a significant test at the $145 mark. This resistance is viewed as pivotal—if AAVE can close decisively above $145, the bullish momentum could extend to the $180–$190 area.

If the token fails to break this range, analysts warned that AAVE could remain trapped in its existing sideways trading channel. The $121.80 mark is being closely watched as the main downside support. A sustained move below this level would undermine the recovery setup and possibly weaken the short-term bullish outlook.

Looking further ahead, $300 is seen as the next major resistance level after the $180–$190 range. For now, the $145 region remains the critical technical zone for determining AAVE’s next move.

A move above $145 is seen as essential to confirm AAVE’s recovery, while holding $121 as support is needed to maintain the bullish structure identified by analyst Crypto With Gopal.

Protocol growth and Aave V4 deployment

The recent strength in the AAVE price coincides with heightened activity on the Aave V4 protocol upgrade. Aave V4, which is the latest version of the lending protocol, surpassed $1 billion in deposits on September 16, marking a new all-time high for the platform.

Governance data indicated that deposit balances reached $708.6 million across six hubs as of September 16, showing a 23% increase over the previous period. The Ethereum Core hub remained the largest contributor, but the recently launched Arc hub also brought in substantial USDC deposits.

Some reserve assets are now near their cap limits, prompting suggestions from within the community to raise these caps to allow further growth.

Aave Labs had previously announced in its August developer update that V4 exceeded $800 million in deposits and set a record for the number of active loans—demonstrating that expansion was ongoing ahead of the latest milestone.

The fundamental backdrop for AAVE has improved as protocol activity grows, but analysts caution that stronger fundamentals may not directly translate into immediate price gains for the token. The price response will likely depend on liquidity in the broader crypto market and technical triggers around the key resistance and support levels.

Aave launched its V4 version on the Avalanche network in July with a Hub and Spoke design, which combines a central liquidity hub with multiple specialized markets. This structure aims to maximize capital efficiency and expand the protocol’s ability to service various assets and user needs.

Mini dictionary: Aave is a decentralized, non-custodial liquidity protocol that allows users to lend, borrow, and earn interest on cryptocurrencies. The V4 upgrade introduces a modular architecture with enhanced efficiency, featuring a hub for central liquidity and flexible spokes for specialized markets.

Outlook for AAVE traders

Traders are now watching two central factors: the price reaction at the $145 resistance and the continuation of protocol growth on V4. A firm move above $145 may strengthen upward momentum and bring the $180–$190 target into play. On the other hand, failure to clear this resistance could refocus attention on the primary support between $121 and $122.

The relationship between expanding protocol adoption and AAVE price performance remains uncertain, as market conditions and liquidity are likely to play a major role.

The current setup gives traders clear reference points; a decisive breakout above $145 would reinforce the recovery thesis, while defending $121 support remains crucial for a sustained bullish outlook.