AAVE has emerged as one of the best-performing cryptocurrencies this month. Throughout the August market rally, AAVE remained among the few tokens that recorded green numbers for most periods.
The cryptocurrency recently broke through a crucial level, prompting investors and analysts to turn their attention to the token. Its recent performance suggests that a parabolic run is coming.
AAVE shows strength amid market declines
AAVE, the native token of the crypto lending protocol of the same name, had one of the best presentations in August. The token rose 43.7% in the last 30 days, showing its strength in the face of market fluctuations.
Following the market crash on August 5, the cryptocurrency fell more than 28% to $79. However, the token quickly recovered most of its price before reclaiming its pre-retracement levels earlier this week.
Bullish price action has propelled AAVE up 33.3% and 35.5% on a weekly and biweekly basis to levels not seen since Q1 highs. On Monday, the token tested again the $120 resistance level before successfully breaking through it on Tuesday.
This performance marked a breakout from a multi-year accumulation range, which was only briefly tested during the March rally. At the time, AAVE price spiked above the $150 resistance level before retracing, a range not seen since 2022.
Whales perceived AAVE’s performance has seen it buy and withdraw over 31,407 tokens worth around $3.92 million recently. Some market observers have noted the token’s price action, suggesting that 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. For Daan, a successful breakout above this level and its holding could “lead to a rapid expansion to the upside.”
Today, the token successfully reclaimed the $130 support level before attempting to retest the $140 mark. Based on its recent performance, the trader considers that the cryptocurrency “still looks great.”
Furthermore, he believes that “things could get really fun” as the price eyes cycle highs of $154. However, he reminded investors that consolidation Above the $115 level is possible because “nothing goes up in a straight line.”
AAVE’s performance was also highlighted by other market observers who suggested that the cryptocurrency could experience a parabolic run towards the $264 and $294 price range. Crypto trader Suen believes that the token “could also become a major narrative in Q4 of this year.”
Despite optimistic predictions, Ali Martinez revealed AAVE could see a significant correction soon. The token’s TD Sequential recently issued a sell signal on the daily chart. According to the analyst, the last four times this signal appeared, it was followed by an average correction of 27%.
If history repeats itself, the token could return to the $100 support level. At the time of writing, the token is up over 9% in the past 24 hours and is currently trading at $137.