Aave V2 Operational, Will Bulls Break The 15-Month Resistance At $110?
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 the v3 markets were thawed following community approval.
Aave is a platform where users can provide liquidity in exchange for rewards while borrowers are free to take out loans while paying interest in a trustless environment.
Aave v2 markets are thawed, security is “non-negotiable”
In the jobAave said the security of the decentralized finance (DeFi) protocol remains a “priority and is non-negotiable for the community.”
November 4, Aave said they received a report of “an issue with a certain feature”. After being validated, the protocol decided to take a step and suspend the operation of their v2 markets on Ethereum. At the same time, some v2 markets on Avalanche have been frozen. Despite this, v2 markets on Polygon were not affected.
Aave has also frozen operations on Aave v3 on Polygon, Arbitrationand OP Mainnet. However, v3 markets on Ethereum, Base and Metis were not affected.
While the 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 could not supply or borrow further. Once these markets have thawed, they can now continue as before.
Will bulls break above $110?
The resumption of services, considering the arrangement of the AAVE candlesticks in the daily chart, did not have an impact on prices. However, the token is trading at around 2023 highs and remains in a bullish formation as bullish traders expect the uptrend to continue.
Despite the uptrend, the bulls failed to break above the $110 resistance level. As it stands, this reaction level marks August 2022 highs and has not been exceeded in the last 15 months.
The token more than doubled at spot rates from $50, a critical support level marking the January and June 2023 lows. For the trend to continue, there must be a solid breakout above 110 $ and the $60 range from which prices moved horizontally in a multi-month accumulation.
However, it is unclear how the token will react in the coming days and whether there will be more upward momentum as liquidity increases as activity resumes on the 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 blocked Ethereumwhere over $5.1 billion worth of tokens are under management.
Featured image from Canva, chart from TradingView
