AAVE Breaks Out Of 2-Year Accumulation Range, Is A Parabolic Run Ahead?

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As a seasoned cryptocurrency researcher with over a decade of experience in this wild and unpredictable digital frontier, I must admit that I am thoroughly intrigued by the performance of AAVE in recent times. The token’s resilience amidst market crashes and its ability to maintain green numbers during August’s retraces is nothing short of impressive.

As a seasoned cryptocurrency investor who’s been through multiple market cycles, I can confidently say that AAVE has emerged as one of the standout performers this month. Even amidst August’s turbulent market corrections, AAVE consistently registered positive gains in most timeframes, setting it apart from many other tokens. Its resilience and adaptability are a testament to its robust underlying technology and strong community support. I believe that AAVE’s success story is far from over and I’m excited to see how it continues to shape the decentralized finance landscape in the future.

1. Lately, the cryptocurrency surpassed a significant threshold, causing both investors and analysts to focus on the digital token. Given its current trajectory, it appears that an extraordinary upward trend might be imminent.

AAVE Shows Strength Amid Market Crashes

1) In August, AAVE, the coin tied to the decentralized lending platform, has been shining bright. Over the past month, it’s climbed a whopping 43.7%. Even with the ups and downs in the market, AAVE has proven its resilience.

Following the market plunge on August 5, the cryptocurrency dropped approximately 28%, reaching a value of around $79. Yet, it swiftly rebounded and recouped a significant portion of its lost price, even surpassing its previous levels prior to the decline earlier this week.

Over the past week and two weeks, the price of AAVE has surged by more than 33% and 35%, respectively, reaching heights not seen since the first quarter. On Monday, the token attempted to break through a resistance level at $120 but managed to do so on Tuesday.

This recent show of performance signified a significant jump out of a price range that had been building up over multiple years, which was barely challenged during March’s upward movement. At that moment, the price of AAVE surpassed the $150 resistance barrier and then fell back, a level not reached since 2022.

As an analyst, I’ve been keeping a close eye on AAVE’s performance, and here’s what I’ve observed: A substantial amount of whales have shown interest in this token. To be more specific, they’ve recently acquired approximately 31,407 tokens, which translates to around $3.92 million.

Is a Parabolic Run Or Correction Coming?

According to Daan Crypto Trades, the token has burst through a 2.5-year phase of gathering, which might signal a rapid increase if the breakout is sustained and maintained at its current level.

Currently, the value of the token managed to regain the $130 resistance point and is now aiming to challenge the $140 threshold. Given its recent trends, a trader finds the cryptocurrency to still be promising.

Furthermore, he feels that “things could become quite exciting” given the price approaching its peak levels at $154. Yet, he cautioned investors that a period of consolidation might occur if the price holds above the $115 level, as “rarely does anything climb vertically without pausing.”

As a crypto investor, I’ve noticed that market analysts have been drawing attention to AAVE’s potential growth. They believe that the cryptocurrency could see a significant surge, potentially reaching prices between $264 and $294. Crypto trader Suen also shares this optimism, predicting that AAVE might emerge as one of the key stories in Q4 of this year.

Despite optimistic predictions, Ali Martinez hinted that AAVE might experience a notable downturn soon. The technical indicator TD Sequential has shown a sell signal on its daily chart, and historically, when this signal appears, it’s often followed by an average correction of approximately 27%.

Should history follow a similar pattern, the value of this token might return to its previous support at around $100. Interestingly, within the last day, the token has spiked by more than 9%, putting it at a current price of $137.

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2024-08-22 12:05