【$AAVE Signal】Long | Healthy Pullback After Short Squeeze Initiation

$AAVE After experiencing a massive bullish candle breakout, the price is consolidating with decreasing volume just above the key resistance turn zone. This is a typical healthy reset after a short squeeze (Short Squeeze) market, not a top.

🎯Direction: Long

🎯Entry: 110.8 - 111.5

🛑Stop Loss: 108.5 (Rigid stop loss, below previous low and EMA20 support)

🚀Target 1: 118.0

🚀Target 2: 124.0

Market Analysis: The 4-hour chart shows that after a volume breakout in the 105.53-115.53 range, the current move is a volume contraction pullback. Key data reveals the main force’s intent: funding rates remain negative (-0.0123%), while open interest (OI) stays stable. This is a typical short squeeze structure, with shorts still forced to cover.

Logical Core: The price remains firmly above EMA20 (110.20), confirming a short-term bullish trend. Depth data shows bid thickness significantly exceeds ask (Bid/Ask Ratio: 1.21), indicating institutional buy support below. RSI (53.21) has recovered from oversold territory to neutral, building momentum for further upward movement.

Risk Control Focus: Entry is placed at the midpoint of the bullish candle breakout and EMA20 support zone. Stop loss is set above the volume initiation point at 105.53, using ATR (3.79) for buffer to avoid whipsaws. Risk-reward ratio > 2.0, aligning with mathematical advantage. No signs of bearish divergence or main force long liquidation are present; strictly avoid contrarian short positions.

Trade here 👇 $AAVE
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