Aave Plunges 16.9%—But MiCAR Greenlight Fuels $228 DeFi Breakout Bet

DeFi's sleeping giant just got a regulatory adrenaline shot.

Markets panicked after Aave's double-digit drop, but smart money's eyeing the rebound. The EU's MiCAR framework just bulldozed institutional barriers—liquidity meets legitimacy.

Price prediction models now target $228 as on-chain activity spikes. Traders stacking positions while traditional finance scrambles to retrofit 20th-century rules. (Bonus jab: Wall Street's still trying to short DeFi with paper gold ETFs.)

This isn't a dip—it's a reload.

• Aave dropped 16.92% today, continuing a downward trend.
• Market capitalization fell to $2.71 billion despite high trading volume.
• Aave Labs received MiCAR approval for zero-fee on- and off-ramps for stablecoins.
• Technical signals indicate a bullish reversal, with a near-term target of $228.

Aave is on a clear downward trajectory, with its value continuing to fall. The token has dropped nearly 16.92% in the past 24 hours and 6.86% over the last week, signaling persistent bearish pressure in the market.

Currently, the token is trading at $177.50, with a 24-hour trading volume of $676.03 million, up 79.33% over the same period. Despite increased trading activity, its market capitalization has fallen to $2.71 billion, reflecting a 16.91% decline and highlighting ongoing negative sentiment among investors.

Aave Labs Gains MiCAR Authorization

Stani.eth, CEO of Aave, highlighted that after two years of dedicated work, AAVE Labs has received MiCAR authorization from the Central Bank of Ireland. This approval allows the platform to operate a zero-fee on- and off-ramp for GHO and other stablecoins. Soon, accessing Aave will be seamless for everyday users, bringing decentralized finance to millions across the 30 EEA member states.

After two years of hard work, we’re excited to announce that Aave Labs has received MiCAR authorization from the Central Bank of Ireland to operate a zero-fee on- and off-ramp for GHO and other stablecoins.

Accessing Aave will soon be seamless for everyday users, bringing DeFi… https://t.co/InQj352jVl

Aave Labs introduces the service of zero fees for both the on-ramp and off-ramp experience of GHO and other stablecoins within the European region. This kind of development will ensure that the movement of funds from cash into DeFi becomes a seamless experience within the token community.

Technical Signals Indicate Bullish Reversal

Technician LSTRADER identifies a bullish turn for the token. After the wave of liquidity passes below $200, Break of Structure (BOS) and Change of Character (CHoCH) confirm that the bearish force has relaxed. The token recently tested a Point of Interest at $200, pulling in buyers and establishing a sound foundation for a positive movement.

The momentum is currently aligned towards a specific target at $228. This corresponds to the Fair Value Gap that could see instances of selling, but also represents a sensible upside target for traders to enter at the current levels. The price zone between $177 and $206 provides a chance to enter a buy position through a positive risk-reward ratio.

Higher lows and the range-bound action at the POI suggest that buyers are taking control. If the volume rises around that area, the chances of hitting $228 improve. The traders will see further bullish action towards the target since the market will be changing from a short-term downtrend to a bullish trend.