AAVE is painting a compelling reversal setup on the 1H timeframe. After a sharp selloff last week, price has tapped the $278โ282 demand zone multiple times โ each time printing higher local lows on the Stochastic RSI and showing signs of exhaustion from sellers.
This zone has now been tested three separate times, forming what looks like a triple-bottom structure. During the latest retest, Stochastic RSI is deeply oversold and beginning to curl up โ suggesting that momentum may shift in favor of the bulls soon.
Weโre also approaching the apex of a descending trendline, meaning compression is reaching its limit. A clean break and reclaim above $290 could be the first real sign of trend reversal, with a potential target near the previous range highs around $335 if momentum follows through.
๐ Why This Setup Matters:
โ Strong historical support zone with visible reactions
โ Repeated seller failure to break the zone cleanly
โ RSI bullish divergence building beneath structure
โ Clear invalidation level below support
โ Risk-reward skewed in favor of a bounce play
This isnโt confirmation yet โ but itโs definitely a chart worth watching closely over the next session. If bulls step in with volume, this could catch momentum fast