【$AAVE Signal】1H Oversold Rebound Trading, Targeting Support at the Lower Boundary of the 4H Downtrend Channel

$AAVE The 1H timeframe shows signs of stabilization and a potential halt in decline around the 111.5-112 region. RSI has fallen to 33.5, entering the oversold zone, indicating short-term selling pressure is weakening. The 4H timeframe remains within a clear downtrend channel, but the current price has touched the channel's lower boundary, suggesting a technical rebound is possible. Open interest remains stable, with no signs of panic selling. Prices are falling, but positions are not decreasing, implying the bulls and bears are still in a tug-of-war.

🎯Direction: Long (Long)

🎯Entry/Order: 112.0 - 112.5 (Reason: 1H candlestick stabilization zone, support at the lower boundary of the 4H downtrend channel )

🛑Stop Loss: 110.8 (Reason: Break below previous low of 111.5 and the channel's lower boundary, confirming continued decline )

🚀Target 1: 115.0 (Reason: Resistance from the 20 EMA on the 1H chart and previous small consolidation platform )

🚀Target 2: 117.5 (Reason: Previous rebound high on the 4H chart and strong resistance at the 50 EMA )

🛡️Trading Management:

- Position Size Recommendation: Light (Reason: The 4H trend remains bearish; this is a rebound within a small trend against the larger trend )

- Execution Strategy: When the price rebounds to around Target 1 (115.0), reduce positions by 50% to lock in some profits, and move the remaining stop loss up to the entry price of 112.5. If the price strongly breaks above 115.5, move the stop loss up to 114.0 to aim for Target 2.

Deep Logic: The order book shows buy orders accumulating in the 112.00-111.50 range (over 400 AAVE), forming a short-term support wall. The 1H RSI shows early signs of bullish divergence, with the price making new lows but RSI not confirming. Despite the downward trend on the 4H, the oversold rebound momentum on the 1H is building, making it suitable for quick in-and-out short-term trades. Funding rates are extremely low, with no risk of being caught long.

Check real-time quotes 👇 $AAVE

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