ambcrypto.com
In a blog post on Thursday, July 9, DeFi giant Aave [$AAVE] introduced Stable Vaults. This infrastructure allows fintechs, wallets, exchanges, and payment providers to embed fixed-rate stablecoin yield into their products.
Possible use cases include neobank embedded savings powered by Aave market, and a payments company letting merchants earn on idle settlement balances, among others, according to the announcement.
The Aave V4 upgrade also drew record deposit numbers, AMBCrypto reported. This has given the $AAVE token a positive jolt. The daily trading volume of the token was up 14.5%, and the price was up by just under 3.5% in the past 24 hours.
Here’s why this momentum might be able to push prices another 12% higher.
Should investors buy the Aave move beyond $100?
In short, buyers might be on the wrong side in this battle. Here’s why.
The 1-day chart showed a bearish swing structure in place. A bearish continuation was established in May, when Aave prices slid below the swing low at $85.05 to reach a new low of $57.83.
This downward impulse move was used to plot a set of Fibonacci retracement levels [orange]. At the time of writing, $AAVE bulls were battling against the 61.8% retracement level at $95.55.
This resistance was also just below the $100 round-number resistance. On one hand, it appeared that a breach of this level would be bullish confirmation.
Traders’ call to action- Watch out for a trap
Such a rally could prove to be a bullish trap if $AAVE fails to reclaim the higher-timeframe resistance levels. The trend on the higher timeframes, such as daily and weekly, were firmly bearish. A continued move up to $105.81, the 78.6% retracement level, is possible.
This is the trap traders and investors should watch out for. Short-term holders might want to use this bounce to exit at a profit.
If the rally continues and breaks the $118.87 swing high, a bullish structural shift would have occurred. Until then, caution would be the safer approach.
Final Summary
- Aave’s Stable Vaults launch adds another fundamental catalyst to the protocol’s growing ecosystem, helping lift short-term sentiment around $AAVE.
- However, the higher-timeframe trend remains bearish, meaning any rally toward $100–$106 could face heavy selling unless buyers reclaim $118.87.