AAVE - Consolidation in Progress. Focus on Key Levels $165–$260 to Trigger New Directional Move

Market Ticker: AAVE/USDC

Date: February 3, 2025 

Strategic Scenario (6 to 12 months) 

The broader bullish structure for AAVE remains intact as long as price action respects the $95 Strategic Support. Despite the recent breach of the $240 Tactical Support, AAVE continues to consolidate within its Wave 4 corrective phase, with the strategic outlook still targeting $540 and $570 upon the completion of this corrective period. 

Neutral Tactical Scenario (1 to 3 months) 

Following the penetration of the $240 Tactical Support, AAVE is now forming a consolidation range between $165 (Tactical Support) and $260 (Tactical Resistance). This range is likely to act as a balancing zone as the market determines the next directional trend. 

Directional Tactical Scenario 

• Bullish Case: A sustained move above $260 would reestablish bullish momentum, opening the door for a test of the $375 Tactical Target. 

• Bearish Case: Conversely, a breakdown below $165 would intensify bearish pressure, pushing prices towards the $130 Tactical Target or lower. 

Technical Key Elements 

• RSI: Hovering near 40, indicating a neutral market environment. 

• Moving Averages: Flattening out, confirming range-bound price action. 

• Elliot Wave: Wave 4 in progress, suggesting potential recovery in Wave 5 (3) C. 

• Fibonacci Levels: 

• Support: $165 and $130 

• Resistance: $260 and $375 
 

Trade Idea Conclusion (Neutral Bias = Range) 

🎯 Range Strategy: 

• Buy near $165, with a tight stop-loss below $160, targeting $260. 

• Sell near $260, with a stop-loss above $270, targeting $165. 

Chart: Daily Basis (Candle Stick) - Logarithmic  

Indicators: Exponential Moving Average (21/34/89) - RSI (21) 

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