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AAVE/USD crypto price news today Elliott Wave technical analysis [Video]

AAVE/USD Elliott Wave technical analysis

  • Function: Counter Trend.

  • Mode: Corrective.

  • Structure: Not Applicable.

  • Position: Wave 2.

  • Invalidation level: $116.

Analysis summary:

Following the end of its Wave V downtrend near the $50–$60 zone in April, AAVE/USD began a strong recovery, forming a complete impulsive move up to Wave I, which peaked at $331.12. Currently, the price action is showing weakness, which aligns with the onset of Wave II, typically seen as a pause and correction phase before a longer-term Wave III uptrend emerges.

AAVE/USD trading strategy

  • Short-term swing trade strategy:
    Look for a reversal pattern in the $195–$172 range as a potential entry zone for positioning with Wave III.

  • Risk management:
    The bullish outlook holds as long as the price stays above the invalidation level at $116.

Chart

AAVE/USD Elliott Wave technical analysis

  • Function: Counter Trend.

  • Mode: Corrective.

  • Structure: Not Applicable.

  • Position: Wave 2.

  • Invalidation level: $116.

Analysis summary:

AAVE completed its V-wave decline around the $50–$60 zone, then initiated a clear uptrend to complete Wave I at $331.12. The current downward movement could be the start of Wave II, commonly a pullback before the beginning of a stronger Wave III bullish phase.

AAVE/USD trading strategy

  • Swing trade entry plan:
    Watch for reversal confirmation signals between $195–$172 for a potential long position targeting the next major move.

  • Risk management:
    The current wave count remains valid unless $116 support is breached.

Chart

AAVE/USD Elliott Wave technical analysis [Video]

Author

Peter Mathers

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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