Aave V2 Operational, Will Bulls Break The 15-Month Resistance At $110?
November 13 2023 - 5:00PM
NEWSBTC
All Aave v2 markets are now operational, the team behind the
non-custodial liquidity protocol announced in a November 13 post on
X. This a day after v3 markets were unfrozen following the approval
from the community. Aave is a platform where users can supply
liquidity in exchange for rewards while borrowers are free to take
loans while paying interest in a trustless environment. Aave v2
Markets Unfrozen, Security Is “Non-Negotiable” In the post,
Aave said the security of the decentralized finance (DeFi) protocol
remains a “priority and is non-negotiable for the community.” On
November 4, Aave said they received a report “of an issue on a
certain feature.” After being validated, the protocol decided to
take a step and pause the operation of their v2 markets on
Ethereum. At the same time, some v2 markets on Avalanche were
frozen. Even so, the v2 markets on Polygon were unaffected.
Related Reading: Crypto Analyst Says One Day Left Until XRP Price
Blast-Off, What To Expect Aave also froze operations on Aave v3 on
Polygon, Arbitrum, and OP Mainnet. However, v3 markets on Ethereum,
Base, and Metis were unaffected. While Aave v2 and v3 markets
were frozen, the protocol clarified that users supplying or
borrowing affected assets could still withdraw and repay their
positions but couldn’t supply or borrow more. With those markets
unfrozen, they can now continue as it was before. Will Bulls Ease
Past $110? The resumption of services, looking at the AAVE
candlestick arrangements in the daily chart, has not impacted
prices. However, the token is trading at around 2023 highs and
remains within a bullish formation as optimistic traders expect the
uptrend to continue. Despite the uptrend, bulls have failed to
break above the $110 resistance level. As it is, this reaction
level marks August 2022 highs and has not been breached in the past
15 months. The token has more than doubled at spot rates,
rising from $50, a critical support level marking January and June
2023 lows. For trend continuation, there must be a solid breakout
above $110 and the $60 range from where prices have been moving
horizontally in a multi-month accumulation. Related Reading:
Polygon (MATIC) Price Fueled By Increase In Whale Activity Still,
it is unclear how the token will react in the days ahead and
whether there will be more upside momentum as liquidity increases
as activity resumes on Aave v2 markets. According to
DeFiLlama data, Aave is one of the largest DeFi protocols,
with over $6 billion in total value locked (TVL). Most of these
assets are locked in Ethereum, where over $5.1 billion of tokens
are under management. Feature image from Canva, chart from
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