AAVE Price Action: The Calm Before the Storm?

AAVEUSDT Weekly Timeframe Analysis 🧠
🔹 Cycles Overview:

HWC (High Wave Cycle): Bullish 🔼

MWC (Medium Wave Cycle): Bullish 🔼

LWC (Low Wave Cycle): Bearish 🔽

When LWC is moving against HWC and MWC, it often means the market is offering a better entry opportunity! 🎯

📈 Current Price Action:

We are currently stuck at the midline of the main channel:

4 touches at the channel bottom.

3 touches at the channel top, plus a breakout and re-entry into the channel.

⚡ If we see a strong rejection from the midline followed by a drop, it could signal that buyers are losing momentum, and the chances of a breakdown below the channel increase. 🚨

⚠️ Risk Management Alert:

Since a short position goes against the higher timeframe cycles (HWC & MWC), it carries higher risk. Stay sharp with risk management! 🛡️

🔎 Volume Observation:

Notice during the last bearish leg, volume is decreasing as price drops.
This could hint at hidden bullish pressure building up beneath the surface! 📉➡️📈

🎯 Setups to Watch:

🔻 Short Setup:

Watch for a clean breakdown below the channel bottom.
(⚠️ Risky — higher chance of hitting stop-loss.)

Alternatively, monitor the $114 zone:
If price reacts weakly here, a breakdown entry might be possible — but again, caution: you’re trading against the main trend.

🔺 Long Setup:

A breakout above $195 would be a strong bullish trigger. 🚀

A midline breakout could offer an early entry, but it’s more risky and requires tight stop management.

🧠 Important Tips:

Since this is weekly analysis, the breakout confirmation should ideally come from a Daily candle close or, at the very least, a strong 4H candle close.

Higher timeframe candles = more reliability ✅

💰 Take Profit Strategy:

First TP: Top of the channel

Second TP: Trendline resistance

"Manage your risk wisely — without it, you're just a ticking time bomb. ⚠️"
— PXA 📊