AAVE Price Prediction: Can the DeFi Token Rally 6,400% and Hit $3,500 This Cycle?

Prominent crypto trader Ali Martinez took to the X platform to share an exciting bullish projection for the price of AAVE.

The price of AAVE has had a contrasting performance in the past week, initially experiencing a bearish downturn below the $300 mark. However, the DeFi coin has shown signs of recovery, rising to $340 on Friday, January 31st.

One crypto analyst believes that AAVE could rally over 6,400% before the end of the current cycle. This projection is based on the movement of AAVE’s price around a TD (Tom Demark) Sequential resistance trendline.

The TD Sequential indicator is a tool used in technical analysis to pinpoint the exact time of trend exhaustion and price reversal for a specific token. Still, the TD Sequential indicator can generate trendlines that act as crucial resistance and support levels for price.

These levels are determined using the extremes of the first candle in the Setup phase of TD Sequential. In the last cycle, specifically in 2020, the AAVE price breached the TD Sequential resistance trendline (represented as the black dots in the chart above).

This singular action was followed by a 6,400% rally, which saw AAVE reach its current all-time high price of $661 in 2021. Currently, the price of AAVE is testing a similar resistance trendline around the $350 level on its monthly chart.

If the price breaks through this resistance zone and history holds, AAVE could witness a move to $3,500.

AAVE Price In The Short Term?

As of this writing, AAVE’s price stands around $337, reflecting an almost 7% increase in the past 24 hours. According to data from CoinGecko, the altcoin is down by 1% in the last seven days.

While AAVE’s future looks incredibly bullish, there are certain obstacles the DeFi coin might need to overcome sooner than expected. According to Martinez in a separate post on X, the AAVE price faces two key resistance zones at $243 and $365, where investors purchased 1.3 million and 971,000 tokens, respectively.

Martinez noted that breaching these supply barriers is crucial for AAVE’s bullish breakout and a potential run to a new all-time high.