【$AAVE Signal】Bull-Bear Battle, Waiting for 1H Level Direction Decision

$AAVE The 1H level is currently near a key support level with narrow fluctuations, while the 4H level is in a rebound correction phase within a downward channel. The current price of 119.3 is closely below the 1H EMA50 (120.89), with bullish and bearish forces temporarily balanced. The 4H candlestick shows a pullback from the high of 124.87, but open interest (OI) remains stable, and the funding rate is negative (-0.0057%), indicating strong bearish sentiment. However, if the price does not fall, there may be a potential for short squeeze. Market depth shows slightly more selling pressure than buying (imbalance -7.57%), awaiting a clear breakout signal.

🎯 Direction: Watch and Wait (Pending Order Strategy)

⚡ Breakout Long Entry: 120.70 - 121.00 (Reason: Hold above 1H EMA50 and previous hour’s high, confirming short-term bullish return)

⚡ Pullback Long Entry: 118.00 - 118.30 (Reason: Rebound to previous low support area on the 4H level and potential trendline)

🛑 Stop Loss: 116.80 (Reason: Break below recent strong support area, structure breakdown)

🚀 Target 1: 123.50 (Reason: Previous high on 4H level and EMA20 resistance)

🚀 Target 2: 125.50 (Reason: Upper boundary of 4H channel and previous wave high)

🛡️ Trading Management:

- Position Suggestion: Light position (Reason: Direction unclear, waiting for confirmation signals, belongs to a left-side battle)

- Execution Strategy: If any pending order is triggered, reduce position by 50% near Target 1, and move the stop loss of the remaining position to the entry price. If the price cannot quickly move away from the cost area and falls back into the entry zone, consider closing the position.

Depth Logic: The current market is in a stalemate. Negative funding rate + stable OI are potential fuel for a short squeeze, but a breakout is needed to ignite it. The 1H RSI (41.07) is in a neutral to weak zone, with room for rebound. The key is whether the price can recover and hold above the 1H EMA50. A volume breakout above 121 could quickly test the 123-124 zone. Below, 118 is an important psychological and technical support; a break below indicates a short-term bearish reversal.

View real-time quotes 👇 $AAVE

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