Aave (AAVEUSD) Rallies More Than 25% After Breaking Resistance of $118

Aave protocol's two major innovations are Stable rate- It helps borrower's financial planning and Flash Loan rate- to borrow without collateral

Aave is a decentralized non-custodial liquidity protocol that allows users to participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers can borrow in an over-collateralized (perpetually) or under-collateralized (one-block liquidity) fashion.

Aave protocol boasts two major innovations:

Stable rate: This rate aids borrowers in their financial planning.

Flash Loan rate: This rate allows users to borrow without collateral during a single transaction.

AAVEUSD was among the best performers today.

Any daily close above $118 confirms further bullishness.

AAVEUSD was the best performer over the past two days, surging more than 25% after breaking through significant resistance at $118. The pair now trades well above the short-term (21 and 55 EMA) and long-term moving average. It hit a high of $93 and is currently trading around $92.16.

The bullish invalidation can occur if the pair closes below $70. On the lower side, the near-term support is $87. Any break below targets $80/$70. A breach below $70 targets $50.

The immediate resistance stands at around $100. Any breach above confirms a minor pullback. A jump to $118/$135 is possible. A surge past $135 will take AAVE to $173.

It is advisable to buy on dips around $80 with SL around $70 for TP of $118/$135.