AAVE Elliott Wave technical analysis [Video]

AAVE/USD Elliott Wave technical analysis

• Function: Trend Following.

• Mode: Motive.

• Structure: Impulse.

• Position: Wave III.

• Next higher degree direction: Downtrend Continuation.

• Wave cancelation level: Not Specified.

Analysis details

AAVE is undergoing a downward correction after reaching a high of $399. The current wave structure suggests a progressive downward movement following the pattern (1)-(2)-(3)-(4)-(5).

AAVE/USD trading strategy

AAVEUSD remains in a well-defined downtrend. The current wave IV represents a short-term recovery before transitioning into the final downward wave V. If the price does not break out, it is likely to test levels below $140.

• Invalidation level: If the price breaks $280, the wave structure needs reassessment.

Trading strategies

• For short-term traders (swing trade):

  • Sell when the price approaches the $180 – $200 range and shows signs of reversal.

Risk management

• If the price breaks above $280, the structure is incorrect and requires reevaluation.

AAVE/USD Elliott Wave technical analysis

• Function: Trend Following.

• Mode: Motive.

• Structure: Impulse.

• Position: Wave III.

• Next higher degree direction: Downtrend Continuation.

• Wave cancelation level: Not Specified.

Analysis details

AAVE continues its downward correction after reaching a high of $399. The wave structure confirms the development of a downward five-wave sequence (1)-(2)-(3)-(4)-(5).

AAVE/USD trading strategy

AAVEUSD is still in a clear downtrend, with wave IV acting as a temporary upward correction before the final wave V decline. If the price remains below key resistance levels, it is likely to test support below $140.

• Invalidation level: If the price surpasses $280, the structure must be reassessed.

Trading strategies

• For short-term traders (swing trade):

  • Look to sell when the price nears the $180 – $200 range and then reverses.

Risk management

• Any movement above $280 suggests the need for structural reevaluation.

AAVE Elliott Wave technical analysis [Video]