Aave Founder Confirms End of SEC Investigation
Stani Kulechov, Aave’s founder and CEO, announced the US SEC ended its four-year probe. He shared this news on his X account on Tuesday. Kulechov said, “DeFi has faced unfair regulatory pressure in recent years. We’re glad to put this behind us as we enter a new era where developers can truly build the future of finance.”
This is a positive step for AAVE in the long term. The closure removes big regulatory risks. It may boost investor confidence. The protocol can now focus on growth and adoption without legal concerns.
AAVE Price Drops Despite Good News
Despite the investigation closure, AAVE’s price kept falling. On Wednesday, it traded below $186 after failing to break a key resistance zone. On Tuesday alone, the price dropped 3.48%.
Derivatives data supports this bearish trend. Open interest on Binance was $56.60 million, near its yearly low. This means traders are closing their positions. Speculative buying is weak at the moment.
AAVE Price Outlook Shows Early Bearish Signs
AAVE was rejected at the 50-day Exponential Moving Average (EMA) at $198.64 on December 10. The price fell 8% by the next day. This EMA line forms a key resistance zone aligned with a falling channel’s upper trendline.
As of Wednesday, AAVE trades at $185.47. If the decline continues, it may test daily support at $179.27. A drop below this level could send AAVE down to weekly support at $160.51.
The Relative Strength Index (RSI) is 47, showing weak bearish momentum. The Moving Average Convergence Divergence (MACD) lines are close to crossing bearish. This could confirm further downward movement.
If AAVE recovers, the price could rise back toward the 50-day EMA near $198.64.
