The post Aave outpaces BTC but hits resistance: Is a reversal on the horizon? appeared on BitcoinEthereumNews.com.

Aave outperforms Bitcoin but faces key resistance. The protocol’s fundamentals are looking good. Aave [AAVE] continues to lead in the crypto space despite doubts surrounding the revenue models of Decentralized Finance (DeFi) blue chips. Some industry voices suggest a reevaluation of what qualifies as earnings and expenses in decentralized systems since these protocols are not traditional corporations. Nevertheless, the AAVE/USDT pair broke a significant 800-day range, causing the pair to trend higher for the past two months, outperforming Bitcoin [BTC] during this period. From 18th June, AAVE/BTC has shown higher highs and higher lows, but it recently faced strong resistance near 0.003 BTC zone. This rejection, combined with Bitcoin’s recent performance, has slowed the pair’s rise. While Aave is expected to continue its upward trend due to strong fundamentals, its pairing with Bitcoin may struggle in the near term. Source: TradingView Additionally, the Chaikin Money Flow (CMF) indicator also shows traders taking profits, with money flowing out of AAVE/BTC pair. However, it’s overall trajectory remains positive, especially when traded against stablecoins, which it is expected to outperform as both AAVE and Bitcoin could surge in Q4. This could be the start of a reversal of Aave’s BTC pair but is yet to be confirmed since… Aave’s stablecoin surpassed $150 million One important factor driving Aave’s bullish momentum is its stablecoin, GHO. GHO has seen steady growth since its launch during a bear market, alongside Curve’s stablecoin (CRV). In early September 2024, GHO’s supply increased by more than 6.7%, and now has reached a milestone of more than $150 million in outstanding supply. Source: Token Terminal Despite CRV having a larger supply than GHO, both stablecoins have potential for significant growth. As GHO continues to grow, it strengthens the broader Aave protocol and its potential for long-term growth. Positive OI-weighted funding…

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Filed under: News - @ September 22, 2024 11:12 am