Aave launched Stable Vaults on Thursday, July 9, introducing infrastructure that enables fintechs, wallets, exchanges, and payment providers to embed fixed-rate stablecoin yield into their products. Use cases include neobank embedded savings powered by Aave market and payment companies allowing merchants to earn on idle settlement balances. The Aave V4 upgrade drew record deposit numbers, helping lift short-term sentiment. AAVE daily trading volume rose 14.5%, with the price increasing just under 3.5% over the past 24 hours. Despite these fundamentals, the higher-timeframe trend remains bearish, with technical indicators suggesting caution around the $100 level.
Aave introduced Stable Vaults on Thursday, July 9, as a new infrastructure for fixed-rate stablecoin yield. The protocol allows fintechs, wallets, exchanges, and payment providers to embed this 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. The Aave V4 upgrade drew record deposit numbers, contributing to positive short-term sentiment around AAVE.
The token’s daily trading volume increased 14.5%, and its price rose just under 3.5% over the past 24 hours. The 1-day chart showed a bearish swing structure in place, with a bearish continuation established in May when AAVE 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. At the time of writing, AAVE bulls were battling against the 61.8% retracement level at $95.55, which was also just below the $100 round-number resistance.
A breach of this level could be seen as bullish confirmation, but such a rally could prove to be a bullish trap if AAVE fails to reclaim higher-timeframe resistance levels. The trend on the daily and weekly timeframes was firmly bearish.
A continued move up to $105.81, the 78.6% retracement level, is possible based on the chart structure. This is the trap traders and investors should watch for, with short-term holders potentially using 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.
