AAVE Price To $360? Crypto Analyst Identifies Pattern For Bullish Breakout

Despite the recent positive momentum in the market, the AAVE price seems to be back under bearish pressure over the past day. As a result of the dwindling sentiment, the price of AAVE has 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 be down for long. According to the crypto pundit, the AAVE price could begin a new bullish rally, with its sights on the $360 mark.

AAVE Price Prediction: Analyst Forecasts 80% Surge

Popular crypto trader Ali Martinez took to the X platform to share a video , explaining AAVE’s potential path to return to its former price highs in the current cycle. This optimistic prediction is based on 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 is often associated with a period of increasing price volatility (or significant price action).

Typically, broadening patterns are bearish chart formations for most asset prices, as they are often correlated with rising volatility without a clear indication of the next direction. However, the current formation appears to be bullish and could prove a pivotal turning point for the AAVE price.

According to Martinez, the DeFi coin looks primed for a bullish break out of the developing broadening pattern. However, the AAVE price would need to breach the crucial resistance level of around $250 before this bullish breakout can be confirmed.

If AAVE successfully closes above this $250 resistance zone, investors could see its price travel to as high as $360 over the next few weeks. This would represent an over 80% surge from the current price point.

Can Whales Push AAVE To $250?

As of this writing, the price of AAVE is hovering around the $200 mark, reflecting an over 6% decline in the past 24 hours. According to CoinGecko data, the AAVE price is up by 4.3% on the weekly timeframe.

While the DeFi coin is far away from the critical $250 mark, the appropriate positive catalysts might be all it needs to cross this level in a few days. One such catalyst that could prove crucial is the rising activity of AAVE whales in recent days.

Data from Santiment show s that the AAVE token saw the largest increase in the amount of $100,000 whale transactions over the past week. The number of these large transactions skyrocketed by more than 267% in the highlighted period.