AAVE Wins MiCA Authorization: Rally Ahead or Return to the $125 Zone?

• Aave secures MiCA authorization, strengthening its regulatory position in Europe.
• Analysts note increasing similarities between AAVE’s current structure and past breakout patterns.
• A move toward the $125 zone could reset market sentiment before any recovery attempt.

Aave (AAVE) is moving in a consolidation phase, showing signs of stability in its price over the past 24 hours. Despite this, the token still reflects a mild weekly decline of about 10.97%, highlighting ongoing market fluctuations.

At the time of writing, AAVE is trading at $179.74, while its 24-hour trading volume stands at $381.93 million, marking a 46.55% drop compared to the previous day. The asset maintains a market capitalization of $2.74 billion, underscoring its steady presence in the broader market.

Source: CoinMarketCap

Also Read: Aave Faces Crucial Support Zone Amid Shifting Interest Rate Environment

Aave Expands in Europe With New MiCA Authorization

The crypto analyst, Crypto Aman, noted that Aave achieves an important milestone as it gets regulatory approval under the MiCA framework offered by the EU, thereby entering a new chapter of expansion for the protocol within this region. This makes it one of the first DeFi platforms to comply with the changes in the European crypto regulations.

The approval is in support of Aave’s Push fiat-to-crypto service, which offers stablecoin ramps with zero fees in the region. The tool is meant to make it easier for fiat to be converted into cryptocurrencies, as high fees act as an entry barrier. Users will benefit when Aave improves the on-ramp, which is the first step in DeFi.

Users in Europe will benefit from the development, as it provides them with an easier and less expensive entry point into the crypto market through the Aave platform. The move is set to come at a critical moment as the MiCA regulation is set to define the industry by simplifying and reducing the complexity required for entry.

AAVE Chart Structure Hints at Possible Move to $125

AAVE is also picking up interest in the market, as analyst Ali points out a chart formation that is almost identical to the last breakout. The token is actually languishing within a small range. There is renewed discussion among traders as this is being watched for an upside breakout.

Source: X

AAVE’s price has been consistently declining from the $300 level and is slowly approaching the critical level of $125, which is an important level of support. The clear lack of strength and numerous attempts to bounce back imply that bears are in control. The price is approaching an important level of demand.

Also Read: Aave Hits $56 Billion in Deposits While AAVE Price Tests $210 Support