【$AAVE Signal】Long! 1H strong consolidation, building up to challenge previous high

$AAVE The 1H timeframe is consolidating strongly around the 120 level, with the price staying close above EMA20(1H), refusing deep retracement. The 4H timeframe has formed a three consecutive bullish candles breakout structure, stabilizing above the EMA20/50 moving averages, indicating a shift from weak to strong trend. Currently, the price is oscillating near the top of yesterday’s large bullish candle, representing a strong consolidation. After accumulation, there is potential to challenge higher resistance levels.

🎯Direction: Long (Long)

🎯Entry/Order: 119.70 - 119.90 (Reason: Support zone of 1H EMA20 and the lower boundary of the strong consolidation platform)

🛑Stop Loss: 118.30 (Reason: Break below the previous 4H candle low and key support level)

🚀Target 1: 122.50 (Reason: Previous high resistance and integer level)

🚀Target 2: 125.80 (Reason: 1.618 Fibonacci extension level and previous accumulation zone)

🛡️Trading Management:

- Position size suggestion: Standard lot (Reason: 4H and 1H trend resonance, risk-reward ratio >1.5)

- Execution strategy: When the price reaches around 121.50 (near Target 1), reduce position by 50%, and move the remaining stop loss up to the entry price of 119.90. If the price strongly breaks through 122.50, consider trailing the remaining position to hold for greater profit.

Deep logic: Although market logic suggests that price increases should be confirmed with volume, current open interest (OI) remains stable. The price has not experienced significant pullback after rising, indicating strong bullish control. The 1H RSI(72.55) is somewhat high but not in extreme overbought territory, leaving room for further upward movement. Order book data shows that buy-side depth in the 119.80-119.90 range is unusually thick, forming a strong support cushion. The 4H buy/sell ratio remains balanced around 0.5, with no obvious profit-taking pressure. Overall, this is a typical strong consolidation after a breakout, with bulls holding the advantage.

Trade here 👇 $AAVE

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