AAVE dropped -8.6% today while the rest of the market rallied — here's why that's actually bullish. 📉➡️📈
Price at $128.01 with increasing volume ($52.7M, 29% above average). The pullback from recent highs is notable, but the daily chart tells a different story: RSI at 69.6 is still bullish, MACD histogram is positive (+1.98), and price is well above the 25-day SMA ($98.07) and 99-day SMA ($87.65).
📊 Why This Trade Works:
This is a classic bull market pullback. AAVE rallied hard from the $88 area (99-day SMA) to recent highs, and an 8.6% correction is healthy after that kind of run. The increasing volume on the dip suggests buyers are stepping in. The 4H SMA25 ($126.93) is acting as immediate support. DeFi blue chips like AAVE don't stay discounted for long in an uptrend.
🎯 Trade Plan:
• Entry: $124.86 - $131.16
• Stop Loss: $119.81
• TP1: $133.13 | TP2: $138.25 | TP3: $143.37
• Risk/Reward: 0.6R (buying dips in uptrends)
🧠 The key: Everyone wants to buy the breakout. The real money is buying the pullback nobody wants to take.
Is AAVE a buy at $128 or waiting for $110? 👇
#AAVE #DeFi #DYOR
⚠️ Disclaimer: This is not financial advice. Trading crypto carries significant risk. Always do your own research and never invest more than you can afford to lose.
Price at $128.01 with increasing volume ($52.7M, 29% above average). The pullback from recent highs is notable, but the daily chart tells a different story: RSI at 69.6 is still bullish, MACD histogram is positive (+1.98), and price is well above the 25-day SMA ($98.07) and 99-day SMA ($87.65).
📊 Why This Trade Works:
This is a classic bull market pullback. AAVE rallied hard from the $88 area (99-day SMA) to recent highs, and an 8.6% correction is healthy after that kind of run. The increasing volume on the dip suggests buyers are stepping in. The 4H SMA25 ($126.93) is acting as immediate support. DeFi blue chips like AAVE don't stay discounted for long in an uptrend.
🎯 Trade Plan:
• Entry: $124.86 - $131.16
• Stop Loss: $119.81
• TP1: $133.13 | TP2: $138.25 | TP3: $143.37
• Risk/Reward: 0.6R (buying dips in uptrends)
🧠 The key: Everyone wants to buy the breakout. The real money is buying the pullback nobody wants to take.
Is AAVE a buy at $128 or waiting for $110? 👇
#AAVE #DeFi #DYOR
⚠️ Disclaimer: This is not financial advice. Trading crypto carries significant risk. Always do your own research and never invest more than you can afford to lose.