【$AAVE Signal】Oversold Rebound Play! 1H RSI severely oversold, initial signs of main force supporting the market

$AAVE The 1H timeframe just experienced a waterfall decline, RSI dropped to 24.23 in the extreme oversold zone, but after finding support around 111.2, the price moved sideways, and selling pressure significantly weakened. Although the 4H timeframe is still in a downtrend channel, open interest (OI) remains stable and did not drop sharply with the price plunge, and the order book shows a clear accumulation of buy orders (112.05-112.12), indicating that the main force may be supporting the market or accumulating positions at this level. This is a typical oversold rebound opportunity—volatility equals profit, target the first wave of the rebound!

🎯Direction: Long (Long)

🎯Entry/Order: 112.10 - 112.30 (Reason: Support at the lower boundary of the current consolidation zone, with dense buy order depth )

🛑Stop Loss: 110.90 (Reason: Break below previous low 111.2 and the key round number confirms continuation of the decline )

🚀Target 1: 114.80 (Reason: 1H EMA20 resistance and the previous small platform )

🚀Target 2: 116.50 (Reason: Major bearish candle start point on 4H timeframe and Fibonacci 0.382 retracement level )

🛡️Trade Management:

- Position size suggestion: Light (Reason: The 4H trend is still bearish, and this is a counter-trend rebound play with higher risk )

- Execution strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price. If the price cannot break through 113.5 (the 1H downtrend continuation platform), consider closing the position early.

Depth logic: The price dropped 5.84% but open interest remained stable, indicating this is not a large-scale liquidation by the main force but more like a long leverage wipeout. The 1H RSI shows a serious bullish divergence, and rebound momentum is building. The order book data shows buy order depth (bid_ask_ratio_depth: 1.01) slightly better than sell orders, with buy orders accumulating at key levels, indicating support. Negative funding rate (-0.0065%) suppresses excessive shorting, creating conditions for a rebound. The key is whether the price can quickly recover 113.5 to reverse the 1H downward trend.

View real-time market 👇 $AAVE

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