Recently, the dark horse in the crypto world is none other than AAVE, which surged directly by 9%, with the current price almost touching 205 dollars, this increase has left the newcomers stunned.
Why is AAVE so powerful? The buffs are clearly stacked! On one hand, it benefits from the Federal Reserve's interest rate cuts, definitely a beneficiary of lower rates; on the other hand, more importantly, it is about to push the V4 upgrade, which comes with an 'upgraded risk control tool'—a redesigned clearing engine, which reportedly makes capital more valuable and risk control more effective, this move directly hits the hearts of traders.
As soon as the upgrade news was released, large funds immediately took crazy action! The previously quiet derivatives market saw unsettled contracts surge by 34 million dollars in just 24 hours, a stark contrast to the earlier calm this week. In simple terms, big players are leveraging the upgrade to go all-in, and this enthusiasm is simply unstoppable! However, we must also be cautious: the more leverage taken, the greater the risk of price volatility; if things go wrong, a sharp rise could lead to an even sharper drop!
Not only are derivatives lively, but the on-chain activity is also celebrating! After December 7th, the number of active receiving addresses for AAVE has almost doubled, almost reaching 12,000!
This is not just a few whales flipping, but real retail investors and big players are entering the market, participation is at an all-time high! The platform is also making a fortune, with network fees increasing by $300,000 per week, total fees soaring to $15.47 million, borrowing interest + liquidation income making a lot of money, the fundamentals are soaring along with the price!
But don’t just shout about the rise! There’s an 'invisible ceiling' in front of AAVE—around $223, there’s a liquidity pressure level of $1.99 million, like a short-term magnet. If it can break through, it’s likely to keep rising; but if it can’t break through, trouble will come! After all, everyone has added so much leverage recently, if the leverage can’t hold, the pullback could be quite severe!
To sum up: AAVE's rise this time is well-founded, with upgrades + interest rate cuts + capital entering the market providing triple buffs, but high leverage has also buried a 'time bomb', making prices particularly sensitive to market fluctuations. Do you think AAVE can break through the $223 resistance level? Or will it directly pull back?
