AAVE prices jump 43% after the launch of Aave V3

Key Takeaways:

  • Aave Protocol recently announced its V3 upgrade that launched cross-chain portals.
  • AAVE jumped 43% in seven days afterwards.
Aave (AAVE) protocol's token prices surged after the launch of Aave V3. Image from Stockvault and Cryptologos.
Aave Protocol’s AAVE token prices surged after the launch of its new upgrade. Image from Stockvault and Cryptologos.

NEW DELHI (CoinChapter.com) — DeFi lending and borrowing platform Aave saw its native token surge by nearly 43%, reaching Mar 21’s high of $162 from Mar 15’s low of $114.

The uptrend received bullish fuel as Aave’s V3 upgrade went live on Mar 16, with the Aave Protocol token gaining 16% when news of the upgrade hit the wire. Although bears did step in to book profits, the token managed to stay above $150.

AAVE price action over the last seven days. Source: CoinMarketCap.com
AAVE price action over the last seven days. Source: CoinMarketCap.com

Bulls defended AAVE prices from falling below their 50-day exponential moving average (yellow wave), with long tails at both ends of Monday’s candle highlighting traders’ aggressive buying and selling.

AAVE’s latest uptrend took its prices to target a nearly 14-week long descending trendline resistance. The trendline has previously rebuffed the Aave token’s uptrend. AAVE moved to challenge the trendline on Mar 18 but failed to break above it. As a result, the token’s prices are currently moving laterally.

Also Read: Aave token jumps over 15% in a day after launching V3 liquidity pool.

If AAVE follows previous trends, then a pullback from the trendline resistance could see the digital token chart a lower swing low. The Aave Protocol token could fall to immediate support near its 20-day EMA (red wave) at $139.

AAVEUSD on the daily charts with trendline resistance and RSI. Source: Tradingview.com
AAVEUSD on the daily charts with trendline resistance and RSI. Source: Tradingview.com

Further sell-off could bring support near $124 into play. Finally, AAVE has support near $113, a level which the token last breached more than a year ago in Jan 2021.

Meanwhile, the token’s relative strength index halted its upward movement towards overbought levels, currently clocking 60.22 on the daily charts. AAVE has a fair chance of continuing its uptrend before its RSI becomes overbought.

AAVE’s MACD Remains Bullish

Momentum oscillator MACD continues to give a bullish signal for the Aave Protocol token. However, positive bars on the MACD histogram seem to be contracting, indicating the MACD line (difference of 12-day and 26-day EMA) is down towards the MACD signal line (9-day EMA of MACD).

Once the MACD line goes below its signal line, it is called a bearish crossover. The MACD histogram, which plots the difference between the two lines, paints contracting bars to signal weakening market momentum for the AAVE token.

AAVEUSD on the daily charts with trendline resistance and MACD. Source: Tradingview.com
AAVEUSD on the daily charts with trendline resistance and MACD. Source: Tradingview.com

For a sustained uptrend, the Aave Protocol token would need to break above the descending trendline resistance and challenge immediate resistance near AAVE’s 100-day EMA (purple wave) line at $175.

Also Read: Basic Attention Token (BAT) price up as Brave announces self serve ads.

If AAVE flips immediate resistance, the token will challenge resistance near $200 before moving to target resistance at $218, near its 200-day EMA (green wave).

The V3 Upgrade

Popular DeFi lending protocol Aave recently announced an upgrade to its platform. The update, dubbed Aave V3, introduced cross-chain portals. Cross-chain portals enable users to transfer their digital assets to Aave Protocol versions on other networks.

In addition, the platform also reduced gas costs for all Aave functions by roughly 25%. Another feature the upgrade introduced was the “high-efficiency mode” or “E mode,” a function that would allow users to borrow more money for their collateral.

Furthermore, the platform also introduced an “isolation mode” that would limit the risks that the platform faces from new and unestablished assets being used as collateral.

At the time of writing, AAVE was trading at $155, up 1.49% on the day.

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Aave Protocol, AAVE prices jump 43% after the launch of Aave V3

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