【$AAVE Signal】1H rebound trading, targeting a pullback within the 4H downtrend channel

$AAVE The 1H timeframe has formed a double bottom near 114.5, with RSI showing bullish divergence, indicating a short-term technical rebound. The 4H timeframe remains in a clear downtrend channel, but the current price has touched the lower boundary of the channel, and open interest remains stable without signs of panic selling, providing a window for short-term trading.

🎯Direction: Long (Short-term rebound)

🎯Entry/Order: 116.2 - 116.5 (Reason: Steady above the 1H EMA20 and previous hour’s high)

🛑Stop Loss: 114.4 (Reason: Break below the 1H double bottom structure and intraday low)

🚀Target 1: 118.8 (Reason: Fibonacci 0.382 retracement of the previous downtrend on the 4H chart)

🚀Target 2: 120.5 (Reason: Resistance at the 4H EMA50 and the midline of the channel)

🛡️Trade Management:

- Position size suggestion: Light position (Reason: The main trend on the 4H remains downward; this is a counter-trend rebound play)

- Execution strategy: After reaching Target 1, reduce position by 50% and move stop loss to entry price. Hold the remaining position for Target 2. If the price stalls or falls back within the entry zone, exit immediately.

Deep logic: Price declines but open interest remains stable, indicating that it’s not sustained selling by major players, possibly passive long liquidation. The 1H RSI(37.49) has exited oversold territory, with buying support accumulating around 115.9-116.0, providing immediate support. Negative funding rate(-0.0165%) suppresses excessive long positions, favoring sustained rebounds. The core risk is that the 4H downtrend has not changed, and the rebound may be limited in height.

Check real-time market 👇 $AAVE

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