DeFi giant Aave (AAVE) introduced Stable Vaults in a blog post published on Thursday, July 9. This infrastructure allows fintechs, wallets, exchanges and payment providers to embed fixed-rate stablecoin yield into their products.
According to the announcement, possible use cases include neobank built-in savings powered by the Aave marketplace and a payments company that allows merchants to earn from idle balances, among others.
The Aave V4 upgrade also brought record deposit figures. AMBCrypto reported. This gave: GHOST It indicates a positive shake-up. The daily trading volume of the token increased 14.5%and the price rose just below 3.5% in the last 24 hours.
Here’s why this acceleration can push prices to another point 12% higher.
Should investors buy Aave’s move above $100?
In short, buyers may be on the wrong side of this war. Here’s why.
1 day chart It showed a downward trend structure in place. A downward trend was seen in May, when Aave prices fell below the lowest level in May. $85.05 reach a new low $57.83.
This downward impulse was used to draw a series of Fibonacci retracement levels (orange). At the time of this writing, AAVE bulls, 61.8% withdrawal level $95.55.
This resistance was also just below it. $100 round number resistor. On the one hand, breaking this level was seen as confirmation of the rise.
Investors’ call to action: Beware of the trap
Such a rise could turn into a bullish trap if AAVE fails to regain the higher timeframe resistance levels. The trend on higher time frames such as daily and weekly was strictly bearish. a movement that continues until $105.81, 78.6% A withdrawal level is possible.
This is the trap that traders and investors need to watch out for. Short-term investors may want to use this bounce to exit with a profit.
If the rally continues and breaks $118.87 If there was a swing higher, a bullish structural change could occur. Until then, caution would be a safer approach.
Final Summary
- Aave’s Stable Vaults launch adds another key catalyst to the protocol’s growing ecosystem, helping to increase short-term sentiment on AAVE.
- However, the higher time frame trend remains bearish; This means that any rise towards $100-106 could face heavy selling unless buyers reclaim $118.87.
