AAVE has become one of the best-performing cryptocurrencies this month. Throughout August’s market retraces, AAVE has remained among the few tokens registering green numbers in most timeframes.
The cryptocurrency recently broke above a crucial level, which made investors and analysts turn their eyes to the token. Its recent performance suggests a parabolic run is around the corner.
AAVE Shows Strength Amid Market Crashes
AAVE, the native token of the crypto lending protocol with the same name, has had one of the best performances in August. The token rose 43.7% in the last 30 days, showing its strength throughout the market fluctuations.
After the market crash on August 5, the cryptocurrency fell over 28% to $79. However, the token quickly recovered most of its price before regaining its pre-retrace levels earlier this week.
The bullish price action has propelled AAVE over 33.3% and 35.5% in the weekly and biweekly timeframes to levels not seen since the Q1 highs. On Monday, the token retested the $120 resistance level before successfully breaking above it on Tuesday.
This performance meant a breakout from a multi-year accumulation range, which was only briefly tested during March’s rally. At the time, AAVE’s price soared above the $150 resistance level before retracing, a range not seen since 2022.
Whales noticed AAVE’s performance, recently purchasing and withdrawing over 31,407 tokens worth around $3.92 million. Some market watchers noted the token’s price action, suggesting it is one of the “few alts that look interesting.”
Is a Parabolic Run Or Correction Coming?
Daan Crypto Trades revealed that the token was breaking out of a 2.5-year accumulation range. To Daan, a successful breakout above this level and holding of it could “lead to quick expansion higher.”
Today, the token successfully reclaimed the $130 support level before attempting to retest the $140 mark. Based on its recent performance, the trader deems the cryptocurrency “still looking great.”
Additionally, he believes that “things can get really fun” since the price is eyeing the cycle highs of $154. However, he reminded investors that a consolidation above the $115 level is possible as “nothing goes up in 1 straight line.”
AAVE’s performance was also highlighted by other market watchers who suggested the cryptocurrency might experience a parabolic run towards the $264 and $294 price range. Crypto trader Suen believes the token “might also become a top narrative in Q4 this year.”
Despite the bullish forecasts, Ali Martinez revealed that AAVE could see a significant correction soon. The token’s TD Sequential recently flashed a sell signal in the daily chart. Per the analyst, the last four times this signal appeared, an average correction of 27% followed them.
If history were to repeat itself, the token could face a retrace back to the $100 support level. As of this writing, the token has surged over 9% in the last 24 hours, currently trading at $137.
Credit: Source link
