tl;dr
The native token of decentralized finance (DeFi) lending protocol Aave, AAVE, has surged 12% in the past 24 hours, reaching $369.10. This follows a proposal to integrate Chainlink's Smart Value Recapture (SVR) system, designed to distribute profits from Maximum Extractable Value (MEV) back to DeFi p...
AAVE, the native token of decentralized finance (DeFi) lending protocol Aave, has surged 12% in the past 24 hours, reaching $369.10. This follows a proposal to integrate Chainlink's Smart Value Recapture (SVR) system, designed to distribute profits from Maximum Extractable Value (MEV) back to DeFi protocols. The proposal has sparked increased trading activity, with open interest rising by 32% to $376 million. AAVE's Relative Strength Index (RSI) is in an uptrend at 62.88, indicating strong buying activity. A potential rally above $400 is possible if AAVE breaks through the resistance at $399.85. However, selloffs could invalidate this outlook, leading to a price drop to $323.46.
On December 23, Chainlink introduced Smart Value Recapture (SVR), an oracle service designed to capture profits generated from MEV and distribute them back to DeFi protocols. A community member proposed integrating SVR into Aave's lending protocol to address disproportionately profitable liquidation processes. This proposal has ignited an uptick in AAVE's trading activity, with open interest climbing by 32% to $376 million. Rising open interest during a price rally indicates strong market confidence and potential for continued momentum.
AAVE is currently trading below the resistance at its three-year high of $399.85. If buyers continue to accumulate, AAVE could break through this resistance and establish it as a support floor, potentially pushing its price above $400. However, selloffs could lead to a price drop to $323.46. The cryptocurrency's Relative Strength Index (RSI) reflects the current buying activity, standing at 62.88 and in an uptrend at the time of writing.