🚨 AAVE/USDT: The Lending Giant Pauses for Breath! What’s Next?

Market Outlook: Aave (AAVE) has shown a strong performance recently but is currently experiencing a short-term correction after hitting a recent high around $350. The price has since dropped, consolidating and testing key support levels. While the overall long-term trend remains bullish, as evidenced by significant year-to-date gains, short-term selling pressure is prevalent, with key resistance levels now in play.

💡 Futures Trading Plan (Neutral Stance):

🟩 Long Entry Trigger: Look for a confirmed bounce and a candle close ABOVE the resistance level of $338–$340 on a higher timeframe (e.g., 4H or Daily) with significant volume. A breakout here would signal a continuation of the rally.

💰Targets: $345, $355, and potentially towards $370.

🛑Stop Loss: Below the breakout candle's low or below the strong support zone around $310.

🟥 Short Entry Trigger: Consider a short if the price shows a strong rejection at the $338–$340 resistance and a confirmed breakdown BELOW the current support area around $310. This would indicate further downside potential.

💰Targets: $300, $290, and towards the lower support zone near $280.

🛑Stop Loss: Above the resistance zone at $340.

Your Action Plan:

01 - ⏳ Wait for Confirmation: Do not rush into a trade. Wait for a clear bounce or breakdown to be confirmed by a candle close. False breakouts can occur during consolidation periods.

02 - 🛡️ Use a Stop-Loss: Always protect your capital. A stop-loss is essential, especially with assets like AAVE that can see significant volatility.

03 - ⚖️ Manage Your Risk: Consider position sizing appropriate for your risk tolerance. Do not over-leverage, given the inherent risks in cryptocurrency trading.

📢 What are your thoughts?

Vote: Do you think AAVE will continue its rally or see a deeper correction?

Bounce and Break Higher

Fall Back to Lows

Comment: Share your analysis below!