Karla Barker 
Aave unfreezes markets after Binance breach
Aave reopened all lending markets on October 30 after freezing new deposits and borrows for about 16 hours. The move followed an attack on Binance hot wallets that drained roughly $6.3 billion. An address tied to the theft used Aave to post stolen USDT as collateral and borrow ETH. Aave said its contracts were not compromised. It froze DAO-operated V3 and V4 markets less than two hours after the breach, covering 175 reserves on 16 networks and 117 on four V4 networks. Withdrawals and repayments continued.
AAVE recovers key technical levels
AAVE traded at $134.97 on Saturday, up 4.5% on Binance. It had fallen below $120 during the sell-off, under the 200-day EMA at $126.63 and the 0.5 Fibonacci retracement at $122.60. Neither break held. The token closed back above both levels within a day and is now within about 2% of $137.88. LlamaRisk said the attacker held AAVE among other governance tokens and sold them for ETH. That helps explain why AAVE lost about 9% in the first hours while Bitcoin and Ether fell roughly 4%. The 50-day EMA crossed above the 200-day in late August, and the two have not crossed back since. Still, the 50-day EMA at $143.84 has started to slope lower and forms a resistance band with $137.88.
Momentum improves but confirmation is missing
The 14-day RSI dipped to about 30 during the sell-off and has recovered to 42.21. It is back above its own average at 39.20. A reading below 50 still means sellers have controlled more of the past two weeks, so a push above 50 and a daily close above $137.88 would be the first real sign of a turn. Volume jumped on the Binance-driven drop, and the rebound sessions have not matched it yet. A close above $137.88 would put $143.84 to $156.79 in focus. A rejection there would bring $126.63 and $122.60 back into play. A daily close under $122.60 would leave $107.31 as the next major support.
Nine assets remain restricted
Aave confirmed all markets were unfrozen by 13:57 UTC on October 30 in four waves. Nine assets still have a zero loan-to-value ratio on V3 and a zero collateral factor on V4: USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG and OP, plus bridged and wrapped versions. Users can supply them and earn interest, but those deposits add no borrowing power. LlamaRisk said the changes removed $3.7 billion of unused borrowing capacity on V3 and $130 million on V4, while utilization in main stablecoin pools rose to between 92% and 100%. It temporarily capped variable stablecoin borrow rates at 10% a year. The next signal for AAVE holders is when those nine assets return to normal parameters.