AAVE is poised for a sharp downturn after breaking market structure, setting the stage for a compelling short setup. Current price action is ripe for a reversal, with key levels now in focus.
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$AAVE SHORT 📉
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📍 Entry Range: $73.4565 – $73.6035
🛑 Stop Loss: $75.7359 (-3.0%)
🎯 TP1: $72.4270 (+1.5%)
🏆 TP2: $69.8535 (+5.0%)
⚡ R/R Ratio: 1:1.7
📊 Confidence: 84%
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The confluence of a CHoCH market structure break, FVG, and OB, all overlapping at a critical POI, makes this short setup particularly compelling. Structure-wise, AAVE has been trading in a tight range, but the recent break of this range has opened up the door for a move lower. The overlap of these signals suggests a high-probability trade, with the 84% confidence level reflecting the strength of this setup.
A 3.0% stop loss may be considered relatively tight, but given the clear levels and strong signal confluence, it's a risk worth taking, especially with moderate leverage of around 2-3x.
Taking partial profits at the first target would be prudent, allowing traders to lock in some gains while still riding the momentum of the trade, should AAVE continue its downward trajectory.
Not financial advice — always manage your own risk 🙏
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