In a blog post on Thursday, July 9, DeFi giant Aave (AAVE) introduced Stable Vaults. This infrastructure allows fintech companies, wallets, exchanges, and payment service providers to embed fixed-rate stablecoin yields into their products.
Potential use cases include integrated neobank savings powered by the Aave marketplace, and a payments company that allows merchants to earn from dormant settlement balances, among others, according to the announcement.
The Aave V4 upgrade also achieved record deposit numbers, AMBCrypto reported. This was given ghost Positive vibration symbol. The daily trading volume of the token has increased 14.5%and the price rose by a little less 3.5% in the last 24 hours.
That’s why this momentum may be able to push prices again 12% higher.
Should investors buy Aave to cross $100?
In short, buyers may be on the wrong side of this battle. This is why.
the One day planner Show a bearish swing structure in place. A bearish continuation was established in May, when Aave prices fell below the swing low at $85.05 To reach a new low $57.83.
This bearish impulsive move was used to draw a set of Fibonacci retracement levels (orange). At the time of writing, AAVE bulls are fighting against 61.8% The retracement level is at $95.55.
This resistance was also slightly less than $100 Ring number resistance. On the one hand, it seems that a break above this level would be a bullish confirmation.
Call to action for traders – beware of the trap
Such a rally could be a bull trap if AAVE fails to reclaim higher time frame resistance levels. The trend on higher time frames, such as daily and weekly, was strongly bearish. Keep moving until $105.81the 78.6% Retracement level is possible.
This is a trap that traders and investors must beware of. Short-term holders may want to use this bounce to exit with a profit.
If the assembly continues and breaks $118.87 If the price had swung higher, an upward structural shift would have occurred. Until then, caution will be the safest approach.
Final summary
- The launch of Aave’s Stable Vaults adds another fundamental catalyst to the protocol’s growing ecosystem, helping to lift short-term sentiment around AAVE.
- However, the trend in the higher time frame remains bearish, meaning any rally towards $100-106 could face heavy selling unless buyers reclaim $118.87.
