News/NewsBTC/ The price of AAVE has had a rollercoaster week, beginning with a bearish dip under $300 and then showing robust recovery signs, hitting a high of $340 on January 31st. The DeFi coin’s latest price setup indicates that it could be one of the top performers in the crypto market this February. However, a crypto analyst has cautioned that the journey may not be completely smooth for AAVE’s price in the coming months.
Prominent crypto trader Ali Martinez recently shared an optimistic bullish projection for AAVE’s price on the X platform. According to his analysis, the DeFi coin could potentially experience an over 6,400% rally before the end of this current cycle.
This bullish forecast is based on the movement of AAVE’s price around a TD (Tom Demark) Sequential resistance trendline. The TD Sequential indicator is a technical analysis tool that identifies trend exhaustion and price reversal times for a specific token.
In 2020, AAVE’s price broke through the TD Sequential resistance trendline, which was followed by a 6,400% rally, leading AAVE to reach its current all-time high price of $661 in 2021. Currently, AAVE’s price is testing a similar resistance trendline around the $350 level on its monthly chart. If the price successfully breaks through this resistance zone and history repeats itself, AAVE could see a move to $3,500.
At the time of writing, AAVE’s price is around $337, reflecting nearly a 7% increase in the past 24 hours. According to CoinGecko data, the altcoin has dropped by 1% in the last seven days. AAVE’s future seems incredibly bullish, but there are specific hurdles the DeFi coin might need to address sooner than later. Martinez noted in a separate post on X that AAVE’s price faces two key resistance zones at $243 and $365. Breaking these supply barriers is crucial for AAVE’s bullish breakout and a potential run to a new all-time high.
