AAVE price hits a 3-week high after the launch of Aave Pro

AAVE hovered near a 3-week high on Tuesday, driven by the potential uptake of the mainstream market through the launch of an institutional lending platform.

The element basic

The platform, named Aave Pro, hopes to become a “licensed liquidity protocol” by providing fintech institutions, corporations and customers with access to decentralized finance (DeFi). Accordingly, strict regulations are followed when admitting attendees to ensure that their Ethereum addresses are securely listed as part of a rigorous Know Your Customer (KYC) process.

Aave Founder and CEO Stani Kulechov said:

“We will have different types of approved markets for DeFi to be multi-layered and tailored to specific needs. The ability to whitelist and blacklist addresses makes it easier for companies to scale and reduces risk. “

Aave Pro will hit the market in July with liquidity pools of Bitcoin, ETH, USDC and native AAVE token.

Merchant Noah said:

“What people don’t like about Aave and Compound’s institutional products is that they give institutional clients easy access to the credit and mortgage markets.”

Cows have responded positively to the organization’s introduction of Aave. Shortly after the rumor spread on Sunday, AAVE / USD started an uptrend, breaking above USD 344 for the first time since June 14th. At its low in the second quarter, the pair is trading at around $ 165 – a 108% increase.

The large price movement was also signaled by the positive development of the entire market. Bitcoin, the world’s leading cryptocurrency by market cap, has rebounded around 25% after bottoming out at $ 28,600 on June 22. On the same day, AAVE / USD fell to $ 165 and then rose 108%.

Aave and Bitcoin prices move almost in sync after they dropped on March 22nd./6th | Source: TradingView

Bitcoin trends often force altcoins to move in the same direction, including AAVE. However, AAVE’s trend over the past 5 days has been steadily up while Bitcoin struggles to hold support above $ 35,000. That could be because AAVE has better preliminary fundamentals than the leading digital asset.

Scott Melker, the author of the crypto-focused “Wolf Den” newsletter, has Note AAVE is attracting massive inflows from the Bitcoin market through its AAVE / BTC liquidity engine. As a result, the pair rose 74.75% to hit 9,800 sats today after finding support at 5,608 sats on June 27th.

AAVE / BTC may 10. to reach.593 sats in the upcoming sessions | Source: Scott Melker, TradingView

Melker’s setup predicted AAVE / BTC over 10,000 sats.

Technical factors

Technically, AAVE / USD is in a bullish area after breaking out of a bullish pattern.

The pair previously oscillated between two converging trendlines, creating a falling wedge structure. The falling wedge starts high up but narrows as the price moves down. Bullish confirmation came after AAVE convincingly broke the higher volume resistance trendline.

Price breakouts from the descending wedge set a profit target that corresponds to the maximum height between the upper and lower trend lines.

Setting up a descending wedge AAVE / USD | Source: TradingView

AAVE’s recent price action is consistent with the previous description of the falling wedge. AAVE is currently in a breakout phase and is aiming for $ 542 as a profit target.

You can see the AAVE prices here.

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According to Cointelegraph

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