The post Aave crypto surges 17% despite 5% Treasury yields—can AAVE hold $155? appeared on BitcoinEthereumNews.com.
Aave [AAVE] climbed more than 17% on September 29, rising from around $149 to above $175. The rally of AAVE has placed it well beyond its highs made in September, and this is despite US government debt offering yields north of 5%! Safer yields from Treasuries hurt the DeFi space as investors no longer feel the incentive to invest. AAVE breaks through its September ceiling AAVE had already been gaining again before its last jump. It was trading under the $90 price level in mid-August but crossed the $120, $140 and then $150 price levels. It was a sign that the latest rally was building on a steady climb rather than on a one-day spike. Meanwhile, the chart shows that after passing the $150-$155 price region [the region which earlier rallies had been rejected], AAVE reached the $175 mark. In addition, AAVE was trading above its major price averages, which showed strength in recent and also a longer period of time. AAVE may now approach the $180 price level from here, which is another big round figure where people tend to stop and take profits Source: TradingView Should it experience a pullback, the more important question is whether buyers return around the $150–$155 price areas. If it’s able to hold that area, that would mean that the former ceiling has become a floor. A fall below it could mean that the rally moved too quickly. Why 5% Treasury yields matter for DeFi AAVE’s rise comes during a difficult period for lending platforms. The US Treasury daily yield shows that ten-year Treasury yields have moved above 5%, reaching levels that have not been seen since 2007. These recent returns being seen compete with DeFi platforms for capital. Investors might question whether lending stablecoins through blockchain platforms is worthwhile if government bonds…