AAVE is about to break through! The DeFi bull market accelerates, seize the opportunity to break through the resistance level of 288, and FOMO sentiment is rising!
Summary
AAVE current price is 287.26, near the upper Bollinger Band, with significant buying pressure but facing strong resistance at 295.0. The short-term trend is bullish; it is recommended to buy on dips, with a target of 295.0 and a stop-loss at 280.0. Risk: Heavy selling pressure above, and a decrease in open interest may trigger a pullback.
Technical Analysis
1. Price Status: Bollinger Band position at 83.5% (near upper band 289.62), indicating overbought risk; MA200 (274.35) and holder cost (274.55) are both below the current price, with a deviation of about 4.7%, supporting an upward trend.
2. Market Strength: 24-hour trading volume ratio at 1.23 (above average), but price slightly decreased by 0.24%, showing active but adjusting; open interest fell by 1.54% in 24 hours, with the long-short ratio dropping from 3.07 to 3.03, indicating weakening bullish sentiment; no significant news impact.
3. Key Levels: Support at 280.0 (buy-side liquidity zone 289k USDT), resistance at 295.0 (sell-side liquidity zone 228k USDT); buy-sell ratio at 1.47 (buying dominant), with near-zone buy orders at 418k USDT > sell orders at 395k USDT, but heavy selling pressure above 295.0.
Market Cycle Analysis
Currently in the mid-stage of a bull market, price is above MA200 with a 7-day increase of 10.59%, but a decrease in open interest suggests potential volatility.
Trading Strategy
• Entry Point: 285.0 (aggressive traders may enter at the current price of 287.26, reason: above the support zone).
• Stop-Loss Point: 279.0 (below the 280.0 liquidity zone).
• Target Level: 295.0 (key resistance).
• Risk-Reward Ratio: 1.67 (based on Long direction calculation).
Risk Warning
• Market Risk: Decrease in open interest, liquidity gap (such as selling pressure at 295.0), macro event impacts.
• Strategy Failure: If it falls below 280.0 or negative news occurs, stop-loss and exit are necessary.
• Operation Caution: Position risk <2%, avoid trading during low liquidity periods.
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