AAVE, one of the most widely recognized DeFi tokens, has started July with a strong performance, posting a more than 26% surge over the past week. The token is gaining traction, evidenced by high whale activity, and is poised to challenge a critical resistance level. After hitting a yearly low of $50 in mid-June, AAVE has embarked on a bullish course, lifting its value by over 53% in recent weeks.
It’s noteworthy that AAVE’s price fell a few days after reaching $75 on June 26, wiping off most of its gains. Nevertheless, it has made a remarkable recovery, setting its sights on the yearly high of $91.73. The key resistance level for AAVE seems to sit around $80, a hurdle that needs to be overcome to reclaim the $90 price level. If the token fails to break this resistance, a minor retracement may occur to find support at the $70 price level.
Data from CoinGecko shows that AAVE currently trades at $72.81, reflecting a slight dip of more than 7% in the past 24 hours, indicative of diminishing buying pressure that might affect its ability to breach the $80 resistance zone.
In an exciting development, the Aave community, on July 3, 2023, endorsed a proposal to freeze the TrueUSD (TUSD) reserve on the Aave V2 Ethereum pool. This move follows recent controversies associated with the stablecoin.
The proposal, referred to as the Aave Improvement Proposal (AIP), aims to take a prudent stance toward the TUSD situation. It would restrict users from depositing or borrowing TUSD on the Aave V2 Ethereum pool.
The proposal garnered substantial backing, with nearly 84% of voters supporting the freeze. However, users could still repay and withdraw their TUSD from the stablecoin pool.
TUSD has been under the spotlight following rumors about the bankruptcy of its technology partner, Prime Trust, and restrictions imposed on withdrawals and deposits under pressure from Nevada state regulators. Despite halting the minting of its stablecoin via Prime Trust, uncertainties surrounding the use of its assets persist, particularly after losing its dollar peg in June.
