【$AAVE Signal】Long and short battle, waiting for confirmation of direction on the 1H timeframe

$AAVE The 1H timeframe is oscillating narrowly below the EMA20 (119.39), with bulls and bears at a stalemate. The 4H candle closed with a long upper shadow and is now retracing. Currently, the price is stuck between the 4H EMA20 (117.55) support and the 1H EMA20 resistance, about to choose a direction. Open interest remains stable, and negative funding rates suggest bears are in control, but the price has not fallen, indicating a potential short squeeze.

🎯 Direction: Watch and wait (Pending orders)

⚡ Pending order strategy:

1. Breakout Long: If the price stabilizes above the 1H EMA20 and breaks 119.50, it is considered a short-term momentum return.

🎯 Entry: 119.60-119.80 ( Reason: Break above 1H EMA20 and the upper boundary of the hourly consolidation zone )

🛑 Stop loss: 118.30 ( Reason: Break below recent 1H low and 4H EMA20 support )

🚀 Target 1: 121.50 ( Reason: Previous high resistance )

🚀 Target 2: 123.80 ( Reason: 4H previous high and Fibonacci 0.618 extension level )

2. Pullback to Long: If the price first tests the 4H key support downward and stabilizes, it’s a better entry point.

🎯 Entry: 117.60-117.80 ( Reason: Rebound from 4H EMA20 strong support and previous low congestion area )

🛑 Stop loss: 116.20 ( Reason: Break below support, ATR-based stop loss )

🚀 Target 1: 120.00 ( Reason: Psychological level and previous 1H high )

🚀 Target 2: 122.90 ( Reason: 4H previous high )

🛡️ Trade management:

- Position size suggestion: Light position ( Reason: Direction is unclear, waiting for confirmation signals )

- Execution strategy: Once any pending order is triggered, reduce position by 50% at Target 1, and move stop loss to entry price. If the price cannot quickly move away from the cost area, consider closing to break even.

Deep logic: Market depth shows buy orders are deeper than sell orders (bid_ask_ratio_depth: 1.23). There is a large accumulation of buy orders below 118.7-118.8, providing short-term support. Open interest remains stable, and with negative funding rates, the price has not made new lows, warning of a potential short squeeze. The 1H RSI (50.04) is neutral, with room for upward divergence. The key focus is on the price fight around 119.4 (1H EMA20).

View real-time market 👇 $AAVE

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