AAVE sees 26% weekly gain, aims to overcome important 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 executed 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.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


HTX From Hot to Cold - $258 Million Flows out since Resuming Operations Last Month

After a recent security breach, HTX, which is associated with Justin Sun, has experienced a significant $248 million ...


Curve's value increases by 22% as the founder sells CRV tokens to repay an Aave loan.

Curve experiences significant growth, with a 22% increase, thanks to the founder's successful sale of CRV to influent...


Ether.Fi will launch the ETHFI token on Binance Launchpool next week.

Liquid restaking protocols, such as Ether.Fi, utilize Ethereum's proof-of-stake blockchain to enhance the security of...


Justin Sun's Huobi-linked exchange, WhiteBIT, raises concerns over its lending platform.

WhiteBIT, an exchange associated with Justin Sun, has recently gained attention for offering an impressive Annual Per...


Justin Sun unstakes 20,000 ETH from Lido Finance. What's happening?

Justin Sun, the co-founder of Tron, has successfully transferred 20,000 Ethereum (ETH) from Lido Finance to Binance u...


HTX Crypto Exchange Bounces Back in Style

HTX crypto exchange resumes Bitcoin transactions after recovering from $30 million hot wallet hack.