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AAVE Records 26% Weekly Gain, Looks To Break Key Resistance
AAVE, one of the most prominent DeFi tokens, has made a bright start to July. The coin is experiencing a price rally, jumping by more than 26% in the past week. Overall, the AAVE market seems to be enjoying much attention as shown by recent high whale activity
AAVE Aims For $90 Again – Price Action
AAVE has been on a positive run in the past few weeks. Since reaching a yearly low of $50 in mid-June, the token has been on a bullish course, which has seen its value rise by over 53%.
Related Reading: Lido (LDO) Sustains Weekly Run With 16% Gain – What Fuels It?
It is worth noting that the price of AAVE declined for a few days after touching the $75 mark on June 26. This fall caused the token to shed most of its price gain at the time. However, the DeFi token appears to have fully recovered from this loss, with its yearly high of $91.73 now in sight
According to historical price data, there seems to be resistance at the $80 price zone. So the AAVE token would need to overcome this barrier in order to make its way to $90 again. If the coin fails to break this threshold, it could experience a slight retracement to find support at the $70 price level.
CoinGecko data shows that AAVE currently trades at $75.81, losing more than 2% of its value in the past 24 hours. This signals a waning buying pressure, which could hamper the token’s chance of breaking the $80 resistance zone.
AAVEUSD trading at $74.25 | Source: AAVEUSD chart from TradingView
Aave Freezes TUSD Reserve on V2 Ethereum Pool
On July 3, 2023, the Aave community uted a proposal to freeze the TrueUSD (TUSD) reserve on the Aave V2 Ethereum pool. This comes in response to the recent controversy surrounding the stablecoin.
This proposal will prevent users from depositing or borrowing TUSD on the Aave V2 Ethereum pool. “This AIP (Aave Improvement Proposal) is designed to take a conservative approach to the TUSD situation,” the proposal read.
Related Reading: Aptos (APT) Gains By 10% Ahead Of July Token Release
TUSD jitters started after its technology partner Prime Trust was rumored to have gone bankrupt. These issues were compounded when the embattled Fintech company shut off withdrawals and deposits due to pressure from Nevada state regulators.
Although TrueUSD has halted the minting of its stablecoin via Prime Trust, there is still some uncertainty surrounding the use of its assets. And losing its dollar peg in the month of June didn’t help its case.
This AIP to freeze TUSD reserves received overwhelming support, as nearly 84% of voters approved it. However, it is worth noting that users will still be able to repay and withdraw their TUSD from the stablecoin pool.
Featured image from Unsplash, chart from TradingView