AAVE Surges 12% Following Proposal for Chainlink Integration
ghostthe native token that powers decentralized finance (Decentralized Finance) The price of lending protocol Aave has surged 12% in the past 24 hours. The gathering follows recent proposals to integrate new chain link Oracle.
As of this writing, AAVE is trading at $369.10, on pace to return to its three-year high of $399.85.
Aave plans Chainlink’s Smart Value Recovery (SVR) Integration
December 23, Chainlink introduce Smart Value Recovery (SVR). This is an oracle service designed to obtain data from Maximum Extractable Value (MEV) and distribute them Back to DeFi protocols.
Following this release, a community member sent a provisional check proposal Visit Aave’s governance forum to discuss integrating SVR into the lending protocol.
Under the proposal, liquidators and searchers would tend to receive disproportionate profits from Aave’s liquidation process, leaving less value for protocol users. By integrating Chainlink’s SVR system, MEV generated by Aave liquidation is recaptured and fairly distributed to all participants, including searchers, builders, and the protocol itself.
This proposal sparked heated debate AAVE’s trading activity. Its value has risen by double digits in the past 24 hours. The increase in its open interest confirms the surge in demand for the altcoin.
At the time of writing, open interest reached $376 million, an increase of 32%.
Open interest refers to the total number of open contracts in the derivatives market, e.g. futures or unresolved options. As with AAVE, when an asset’s open interest increases during a price increase, traders open new positions in the direction of the price movement, indicating strong market confidence and the potential for continued momentum.
Additionally, on the daily chart, AAVE’s Relative Strength Index (relative strength index) is in an upward trend, reflecting buying activity. As of this writing, the number is 62.88.
This indicator measures oversold and overbought market conditions for an asset. At press time, AAVE is in an uptrend at 62.88, with market participants buying more than selling.
AAVE Price Prediction: A rebound above $400 is possible
AAVE is currently trading below resistance at its 3-year high of $399.85. If buyers continue to accumulate positions, AAVE could break through this resistance and establish it as support. The breakout could push its price above $400 for the first time since 2021.
However, if the sell-off begins, this bullish outlook will be invalidated, and AAVE price could plummet to $323.46
Disclaimer
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