After a powerful run-up, $AAVE has seen a sharp rejection from the highs, breaking its upward momentum. The price is now consolidating in a tight, dangerous range. This is where impatient traders get hurt by trying to guess the bottom.
A professional trader waits for the market to give a clear signal. We will define the battle lines and only act when a winner is confirmed.
📊 The Analysis: Defining the Battlefield
The fight is now happening in a new, lower range.
🔹 Resistance (The Ceiling): Sellers are capping any bounce at the $270 level.
🔹 Support (The Floor): Buyers are attempting to hold the line at the recent low of $264.
🔹 The Market Emotion: Fear and uncertainty after a sharp drop. The dominant momentum is now bearish.
📈 The Game Plan: Don't Predict, React.
The #1 rule is to respect the new downtrend. We will not try to catch the falling knife; we will wait for a confirmed signal.
1. The Bearish Continuation Plan (Primary) 🐻
✅ Entry Signal: Wait for a strong 2-hour or 4-hour candle to close decisively BELOW the support at $264. This confirms the downtrend is continuing.
🎯 TP1: $258
🎯 TP2: $250 (The previous major low)
🛑 SL: Place it back inside the range, around $267.
2. The Bullish Reversal Plan (Low Probability) 🐂
✅ Entry Signal: For a safe long trade, we need strong proof that the downtrend is over. Wait for a powerful candle to close decisively ABOVE the resistance at $270.
🎯 TP1: $278
🎯 TP2: $284 (The major recent high)
🛑 SL: Place it back inside the range, around $268.
🔥 The Bottom Line: The momentum has clearly shifted from bullish to bearish. The highest probability trade is to wait for the support to break. Don't fight the market's current.
👇 Will AAVE hold support for a bounce 📈 or are we heading lower 📉? Let me know your call!
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