- AAVE holds above key EMAs as bullish momentum persists despite the security exploit.
- Open interest rebounds to $482.72M, signaling renewed activity in AAVE derivatives.
- Positive exchange flows and rising volume point to improving demand for AAVE tokens.
Aave (AAVE) has extended its weekly gains despite a security incident involving an Ethereum module linked to leveraged positions. The exploit exposed weaknesses in a custom Safe module, while renewed derivatives activity and positive exchange flows supported market momentum.
Defimon Alerts estimated losses at approximately $305,000 after attackers targeted two affected wallets on October 1. Meanwhile, AAVE maintained a strong technical structure, trading above its major daily moving averages. However, the incident introduces fresh concerns about third-party tools connected to Aave’s lending ecosystem.
Aave Exploit Targets Custom FlashLoopAdapter Module
The October 1 incident involved FlashLoopAdapter, a custom Ethereum module managing leveraged Aave V3 positions through Safe wallets. The attacker exploited an access-control weakness and withdrew collateral from two affected wallets. One transaction involved repaying approximately 1,335 WETH in Aave debt.
Consequently, the attacker withdrew approximately 1,306.48 weETH from the first Safe wallet. Another affected wallet lost approximately 6.4 weETH.
The attacker later converted some withdrawn assets and retained approximately 114.1 ETH. Defimon estimated the combined losses at roughly $305,000.
However, Etherscan displayed approximately $3.88 million in gross collateral movement for the first transaction. This figure represents the recorded withdrawal, not the estimated financial loss.
AAVE Price Holds Bullish Structure Despite Security Concerns
AAVE traded around $181.06, recording an 8.49% daily increase and a 27.60% weekly gain. Its market capitalization reached approximately $2.79 billion, supported by a daily trading volume exceeding $640 million.
Significantly, AAVE trades above all four major daily exponential moving averages. The 20-day EMA stands at $150.27, while the 50-day EMA sits at $132.91.
Additionally, the 100-day and 200-day EMAs remain near $119.04 and $120.31, respectively. This positioning indicates sustained upward momentum across multiple timeframes.
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However, AAVE faces immediate resistance around $187.28, its latest swing high. A breakout could bring the psychological $190–$200 region into focus.
The $171.56 Fibonacci level provides initial support, followed by $159.21 and $150.54. Meanwhile, Bollinger %B at 1.10 signals stretched momentum and potential consolidation.
Open Interest and Exchange Flows Signal Renewed Activity
AAVE’s derivatives market also shows renewed participation following several months of declining open interest. Open interest recovered to approximately $482.72 million on October 2, compared with nearly $200–$300 million during August and September.
Moreover, rising prices alongside increasing open interest suggest traders are rebuilding positions. However, this development does not establish whether bullish or bearish leverage dominates.
Spot exchange flows also turned positive, reaching approximately $1.77 million on October 2. This reversal suggests improving buying interest after prolonged outflow pressure. Consequently, sustained positive flows could strengthen AAVE’s recovery.
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Technical Outlook For Aave Price
Key levels remain well-defined heading into October:
Upside levels: $187.28 represents the immediate resistance and recent swing high. A decisive breakout could open the path toward $190 and the psychological $200 level.
Downside levels: $171.56 (0.786 Fibonacci) serves as initial support, followed by $159.21 and $150.54. The $150.27 20-day EMA provides an important trend-support zone.
Resistance ceiling: $187.28 remains the key level to overcome for continued bullish momentum. A sustained move above this barrier could strengthen the breakout structure and attract additional buying interest.
The technical picture suggests AAVE maintains a strong bullish trend, trading above all major daily EMAs. However, Bollinger %B at 1.10 indicates stretched momentum, raising the possibility of short-term consolidation or profit-taking.
Will Aave Go Up?
Aave’s October price prediction hinges on whether buyers can defend $171.56 and mount another challenge toward $187.28. Rising open interest, which recently recovered to approximately $482.72 million, signals renewed derivatives participation. Additionally, positive spot netflows of approximately $1.77 million indicate improving capital movement.
If buying pressure strengthens and AAVE clears $187.28, the price could approach $190 and potentially $200. However, failure to maintain $171.56 could expose the $159.21 support level and the $150.54–$150.27 region.
Meanwhile, the recent FlashLoopAdapter exploit, which reportedly caused $305,000 in losses, introduces additional security concerns surrounding Aave-linked leveraged positions.
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For now, AAVE remains in a pivotal zone. Strong technical momentum supports the broader uptrend, but sustained inflows, resistance clearance, and confidence following the security incident will shape its next move.
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