Aave has rejected from high-timeframe resistance at $316 and is now approaching a critical support zone. While short-term weakness has emerged, the broader structure may still favor bullish continuation.
Summary
- Aave rejected from high-timeframe resistance at $316 and lost the point of control.
- Major support sits at $227, backed by Fibonacci, structure, and a bullish order block.
- Holding $227 could trigger a bounce toward $390 and maintain the bullish market trend.
After failing to break through the $316 high-timeframe resistance, Aave (AAVE) began a corrective move that has now brought price action down to the point of control. This level serves as a key short-term gauge of strength. If AAVE fails to hold this zone, the next major support lies at $227, where multiple high-timeframe bullish signals converge.
Key technical points:
- HTF Resistance Rejected at $316: A strong rejection has shifted momentum short-term.
- Major Support at $227: Confluence of 0.618 Fibonacci, higher low zone, and bullish order block.
- Bullish Market Structure Intact: As long as $227 holds, structure favors a rotation back toward $390.
The rejection from $316 marks a clear local top for now, especially as price rotates back into more meaningful support levels. The point of control has acted as a buffer, but recent price action suggests weakness at this level. If this area fails on a daily closing basis, the probability increases for a deeper retracement toward $227.
The $227 region carries significant technical importance. It is not only a historical higher low, but also aligns with the 0.618 Fibonacci retracement level and a bullish order block based on previous candle structures. This combination of support levels forms a high-confluence zone where price could form a bottoming pattern and resume upward movement.
From a structural standpoint, the current pullback is still considered healthy within the context of an overall bullish market. A rotation into high-timeframe support does not invalidate the uptrend, as long as the region holds and price eventually forms a higher low. This would support the narrative of continued strength and offer a potential setup for a new leg higher.
Should support at $227 hold and a bounce materialize, the upside target remains the high-timeframe resistance at $390. This would represent a full bullish rotation from support back into the next major zone of supply and would keep the trend of higher highs and higher lows intact.
What to Expect in the Coming Price Action
Aave’s price is likely heading toward the $227 support zone after losing the POC. If that level holds, a bullish reversal is likely, targeting $316 and potentially $390. However, failure to hold $227 would compromise the structure and open the door to deeper downside.
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