Key Takeaways:
- Aave Protocol's in-house token jumped 15% and traded at $137 after a moderate decline.
- The network introduced a new upgrade , Aave V3.
- V3 will feature a number of innovations, including a portal and gas optimization.
YEREVAN (CoinChapter.com) – AAVE traded just above $137 during Thursday’s Asian-Pacific session after jumping 15% in the past 24 hours as traders assessed its parent platform’s new protocol upgrade.
Aave V3 now live
Aave announced the so-called ‘V3’ on Mar. 16, calling it the “most powerful version” to date featuring “groundbreaking features.” That includes cross-chain transactions.
Protocol V3 allows governance-approved bridges to burn aTokens on the source network while instantly minting them on the destination network. The underlying assets can then be supplied to Aave on the destination network in a deferred manner, by passing it to the pool after it has been moved through a bridge.
read the summary.
Additionally, V3 provides gas optimization, which, according to the claim, will reduce gas costs for all functions by 20-25%.
Also read: Ethereum jumps over 9% as upcoming merge adds bullish cues.
The new Aave Protocol will “provide additional protection through various risk caps & other tools” and feature an isolation mode that will allow the system to list new assets while protecting the protocol.
The Efficiency mode would also allow borrowers to extract the highest borrowing power from their collateral when supplied.
Falling wedge rebound ahead?
Moreover, AAVE’s daily chart hinted at a possible uptrend in the wake of a support retest at approximately $110. The said support has been relevant for the previous three weeks and appeared in confluence with the bottom trendline of a Falling Wedge.
Also read: 3 reasons why RIOT stock is good investment despite 80% drop from ATH.
The latter entails two down-sloping lines that enclose the price action and gradually lower the swing. The Falling Wedge is a bullish pattern, forecasting an upcoming price advance. Finally, the bullish relative strength index (RSI) diversion also backed the outlook.
In detail, the mentioned diversion is a separation between price and momentum, i.e., the price has been moving lower, but its daily relative strength index (RSI) was moving higher.
Furthermore, the uptrend came in the wake of a significant Protocol upgrade, as Aave introduced its V3 liquidity protocol.
