AAVE up 5% after DAO approves funding plan: is $100 next?

AAVE, the native coin of the Aave ecosystem, is one of the best performers among the top 50 cryptocurrencies by market cap.

While Bitcoin and Ether underperform, AAVE has added 5% to its value in the last 24 hours and could rally higher in the near term. 

Aave DAO approves $25 million Aave Labs funding grant

AAVE’s rally over the last 24 hours comes after the Aave DAO on Sunday approved the first binding piece of founder Stani Kulechov's "Aave Will Win" framework.

The DAO approved a $25 million stablecoin grant and 75,000 AAVE (worth about $6.8 million) token allocation to development firm Aave Labs.

The proposal, "Aave Will Win Framework: Primary Funding Request," got 522,780 votes in favor and 175,310 against, a 75% approval from the community. 

Aave Labs revealed that the grant comprises an immediate 5 million aEthLidoGHO allowance (a yield-bearing stablecoin), a 5 million aEthLidoGHO stream over six months, and a 15 million aEthLidoGHO stream over 12 months from the DAO's Collector Contract. 

Furthermore, the 75,000 AAVE allocation will be derived from Ecosystem Reserve over 48 months, double the 24-month vesting schedule outlined in the original temp check.

The funding on Sunday is part of the broader "Aave Will Win" framework.

It also includes milestone-based payments tied to launches of the Aave App, Aave Pro, Aave Card, and Aave Kit, as discussed within the original framework. 

Kulechov also laid out a multi-year strategy that includes consumer products, fintech integrations through Aave Kit, and the pursuit of additional regulatory licenses globally to support fiat onboarding.

The broader framework proposes that all revenue from Aave-branded products, including aave.com swaps, Aave Pro, the Aave App, Horizon, and Aave Kit, would flow to the DAO treasury in exchange for the DAO funding Aave Labs' product development.

AAVE eyes the $100 psychological level

The AAVE/USD 4-hour chart is bearish and efficient despite its recent rally. At press time, AAVE is trading at $94 and could rally higher in the near term.

The momentum indicators have switched positive, indicating that the bulls are in control.

The Relative Strength Index (RSI) of 53 is above the neutral 50, suggesting that the bulls are regaining control of the market.

The Moving Average Convergence Divergence (MACD) is also within the positive zone, adding further confluence to the bullish narrative. 

If the recovery persists, AAVE could surge past the $100 psychological level over the next few hours or days.

A daily candle close above $100 could pave the way for AAVE to retest the 4-hour swing high of $116 created on March 25.

However, if the recovery fails, AAVE would find immediate support at the April 7 low of $85.

A break below the $85 support level could expose AAVE to lower levels below $80 for the first time this year.

Currently, the market conditions remain fragile due to the ongoing tensions between the United States and Iran.