Despite the recent positive momentum in the market, AAVE’s price seems to be back under bearish pressure over the past day. Due to declining sentiment, the price of AAVE dropped beneath the psychological $200 level in the last 24 hours.
However, a prominent crypto analyst on social media platform X has suggested that the DeFi token won’t remain down for long. According to the analyst, AAVE’s price could begin a new bullish rally with aspirations toward the $360 mark.
AAVE Price Prediction: Analyst Forecasts 80% Surge
Popular crypto trader Ali Martinez took to X to share a video explaining AAVE’s potential path to returning to its former price highs during the current cycle. This optimistic prediction is grounded in a developing “broadening formation” on a medium-term timeframe of the AAVE price chart.
For context, a broadening formation is a price pattern in technical analysis characterized by two diverging trendlines; a rising upper trendline (connecting a series of higher highs) and a falling lower trendline (connecting lower lows). This pattern often indicates a period of increasing price volatility and significant price action.
Typically, broadening patterns are considered bearish for most asset prices, as they correlate with rising volatility without providing a clear indication of future direction. However, the current formation appears to be bullish and could signal a pivotal turning point for the AAVE price.
According to Martinez, the DeFi coin looks poised for a bullish break out of the developing broadening pattern. Nonetheless, the AAVE price must breach the crucial resistance level of approximately $250 to confirm this bullish breakout.
If AAVE successfully closes above this $250 resistance zone, investors could witness its price surge to as high as $360 over the next few weeks, marking an over 80% increase from the current price point.
Can Whales Push AAVE To $250?
As of this writing, the price of AAVE hovers around the $200 mark, reflecting an over 6% decline in the past 24 hours. According to CoinGecko data, AAVE’s price remains up by 4.3% on a weekly timeframe.
While the DeFi coin is currently distant from the critical $250 mark, the appropriate positive catalysts could propel it past this level within days. One potential catalyst is the rising activity of AAVE whales in recent days.
Data from Santiment indicates that the AAVE token experienced the largest increase in the number of $100,000 whale transactions over the past week. The count of these large transactions soared by more than 267% during the highlighted period.
