Technical Analysis

​1. Support Zone Validation
​The price has returned to a significant horizontal Support Zone (highlighted in the lower red box) between approximately $105.00 and $108.00.
​This area has historical significance, as seen on February 28th where a sharp bounce occurred.
​The current price is showing signs of stabilization within this zone, suggesting that buyers are stepping back in.
​2. Resistance Targets
​The upper red box represents the immediate Resistance Zone (around $117.50 – $119.50). This was a previous support that turned into resistance after the price broke below it on March 6th. This is the logical first target for a recovery.
​Trade Setup Parameters
​Based on the long position tool (the green and red box on the right):
​Entry Price: Approximately $107.82.
​Take Profit (TP): Set at $118.61. This aligns with the top of the resistance zone.
​Stop Loss (SL): Set at $103.87. This is placed safely below the recent swing low and the support zone to protect against a deeper breakdown.
​Risk-to-Reward Ratio: This appears to be roughly 2.7:1, which is a solid professional ratio.
​Strategic Considerations
​Candlestick Confirmation: Before committing, look for a bullish reversal pattern on the 15-minute or 1-hour chart (like a Bullish Engulfing or a Hammer) inside this support zone.
​Volume: Watch for an increase in buying volume as price moves away from $107.80. Low volume on the bounce could indicate a "dead cat bounce" before further downside.
​Market Context: AAVE often follows the broader crypto market (BTC/ETH). Ensure the overall market sentiment isn't bearish enough to drag AAVE through the support floor.