AAVE price forecast as 'Aave Will Win' proposal passes temp check stage

Aave (AAVE) continues to face pressure amid broader market weakness, with the token struggling to hold above a key support level.

Heightened uncertainty across global markets, including tensions following US and Israeli strikes on Iran, has weighed on risk appetite.

Bitcoin has hovered near $65,000, with most altcoins tracking its subdued movement.

AAVE is currently trading around $114.

The question for the market is whether buyers can regain control and build momentum, potentially drawing support from the “Aave Will Win” proposal, or whether prevailing bearish sentiment will continue to cap upside attempts.

Aave proposal passes key temp check stage

The “Aave will win” proposal aims to redirect 100% of Aave Labs' product revenue directly to the DAO treasury and AAVE holders.

This governance shift targets a token-centric economy, with all revenue from Aave products going into AAVE.

The framework also ratifies Aave V4 as the core technology, introducing revenue-enhancing features like Spokes for new markets and a reinvestment module for idle liquidity.

Potentially, this could bring millions in additional DAO income.

Stani Kulechov, the founder and CEO of Aave Labs, has announced that the community has overwhelmingly endorsed the framework.

This milestone is part of the initial temp check stage, which offers a snapshot of the community’s support.

After the temperature check, the next phase is the Aave Request for Comment (ARFC) stage, which uses community feedback to refine the proposal.

Key aspects of this stage include governance mechanics, sustainability, and implementation details.

“Temp Check for the Aave Will Win proposal has passed. This brings Aave Labs closer to a fully token-centric model, directing 100% of product revenue to the $AAVE token,” Kulechov noted.

Aave price outlook

“Aave will win” is a development that arrives as the protocol’s DeFi lending TVL stabilises.

Meanwhile, Aave has recently hit the milestone of becoming the first lending protocol to surpass $1 billion in RWA deposits.

Bulls are also looking to show conviction as AAVE maintains a lion’s share of the DeFi lending market.

However, crypto weakness amid macroeconomic headwinds has weighed on prices.

Despite the positive governance news, AAVE's price remains pinned below recent highs, having established a downtrend since hitting $357 in August.

While bulls are off lows of $100 reached on February 5, 2026, current prices are more than 14% down this past month.

In the short term, bulls will eye gains to $130 and possibly the psychological $200 level.

However, the 50-day and 100-day EMAs offer resistance around $134 and $153.

Bearish momentum also remains despite last week’s oversold bounce.

In this case, RSI levels around 42, and a potential MACD flip into negative momentum could see prices retreat to support near $100. Below this, bears could target $78.