【$AAVE Signal】Hold off on trading — Downtrend continuation, waiting for a clear direction

$AAVE After a sharp decline, the price has been weakly consolidating in the 105-109 range, forming a downtrend continuation pattern. The price is being suppressed by the EMA20 (109.4), and the EMA50 (114.9) acts as a strong resistance above, indicating a generally bearish trend.

🎯 Direction: No position (NoPosition)

Market analysis: On the 4-hour chart, after a brief surge to 113.9 yesterday, the price quickly retreated, forming a long upper shadow, indicating heavy selling pressure above. Currently, the candlestick is consolidating with decreasing volume below the EMA20, showing that buying momentum is insufficient to break through the key moving average resistance.

Core logic: Open interest (OI) remains stable, funding rate (0.0062%) is positive but not high, suggesting that both bulls and bears are at an impasse at this level, not signaling strong short covering or bullish accumulation. The depth imbalance (-11.75%) and buy-sell ratio (0.79) show that sell orders are more concentrated, with clear resistance above.

Key levels: Watch the support around the previous low of 104.6-105.2. If volume increases and the price breaks below this, the downtrend continuation is confirmed, and the trend will persist. Only a successful break above EMA20 (109.4) and stabilization could reverse the short-term downtrend. Currently, there is no clear right-side entry signal, and risk-reward is uncertain.

Trade here 👇 $AAVE

---

Follow me: Get more real-time analysis and insights on the crypto market! $BTC $ETH $SOL