AAVE is painting a compelling reversal setup on the 1H timeframe. After a sharp selloff last week, price has tapped the $278–282 demand zone multiple times — each time printing higher local lows on the Stochastic RSI and showing signs of exhaustion from sellers.
This zone has now been tested three separate times, forming what looks like a triple-bottom structure. During the latest retest, Stochastic RSI is deeply oversold and beginning to curl up — suggesting that momentum may shift in favor of the bulls soon.
We’re also approaching the apex of a descending trendline, meaning compression is reaching its limit. A clean break and reclaim above $290 could be the first real sign of trend reversal, with a potential target near the previous range highs around $335 if momentum follows through.
📊 Why This Setup Matters:
– Strong historical support zone with visible reactions
– Repeated seller failure to break the zone cleanly
– RSI bullish divergence building beneath structure
– Clear invalidation level below support
– Risk-reward skewed in favor of a bounce play
This isn’t confirmation yet — but it’s definitely a chart worth watching closely over the next session. If bulls step in with volume, this could catch momentum fast.
This zone has now been tested three separate times, forming what looks like a triple-bottom structure. During the latest retest, Stochastic RSI is deeply oversold and beginning to curl up — suggesting that momentum may shift in favor of the bulls soon.
We’re also approaching the apex of a descending trendline, meaning compression is reaching its limit. A clean break and reclaim above $290 could be the first real sign of trend reversal, with a potential target near the previous range highs around $335 if momentum follows through.
📊 Why This Setup Matters:
– Strong historical support zone with visible reactions
– Repeated seller failure to break the zone cleanly
– RSI bullish divergence building beneath structure
– Clear invalidation level below support
– Risk-reward skewed in favor of a bounce play
This isn’t confirmation yet — but it’s definitely a chart worth watching closely over the next session. If bulls step in with volume, this could catch momentum fast.
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Try our strategy optimizer at quanttradingpro.com
Developing free strategies weekly stay tuned...
Join our discord discord.gg/2systG9frc
We provide education & tools.
Developing free strategies weekly stay tuned...
Join our discord discord.gg/2systG9frc
We provide education & tools.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.