As the overall market sentiment cools, AAVE emerges as a winner because it maintains high profitability even when the market is down slightly. According to CoinGeckoThe token is up over 18% since last week, a sign that AAVE is continuing to rally in the market despite recent events grinding to an almost complete stop.

AAVE intends to expand the reach of its operations by offering Aave v3 activation on zkSync, leveraging zkSync’s bulk capabilities to keep transaction costs low for users.

Yes to activate v3 on zkSync

The activation of Aave v3 on zkSync is part of the long-term implementation of Aave v3 on the zkSync chain. It was first reported on June 11, quoting zkSync’s scalability and performance while “maintaining the security and decentralization of the Ethereum mainnet… Deposit and lending activities can greatly benefit from the reduced transaction costs and increased throughput offered by zkSync.”

Once activated, Aave users can expect low transaction fees and rapid checkout, which contributes to an improved user experience and increases network scalability.

The voting process for the motion is still ongoing, but at the moment there is general agreement that outstanding “Yes” for the community with almost 47,000 votes in favor of activation. However, the proposal needs 320,000 votes to pass, giving users more time to weigh the pros and cons of activation.

Secured levels open up opportunities for AAVE

At the time of writing, AAVE is back to its pre-August level of $110.43, opening up the potential to reach $124 in the near term. But that also opens up the question of whether the cryptocurrency has the momentum to hit that price target.

The $105-$115 price range opens the door to higher levels once the bull market returns. As the market remains stagnant after several days of bullishness, we could see the coin stall at this price level before continuing the rally next week.

However, this move is based on the likelihood that the market will resume its rally. If market sentiment continues to encourage selling, we could see the token return to pre-$100 levels in the coming days, likely to the $93 low.

However, current Relative Strength Index (RSI) data suggests that AAVE still has some room to squeeze out some near-term gains. With improving macroeconomics factors, we may witness another wave of capital inflow from novice retail investors who will try their hand at the market for some time.

Investors and traders should be sanguine in the coming days as the token stabilizes around its current price range, maintaining its long-term momentum.

Featured image from Shrimpy Academy, chart from TradingView