AAVE Is Forming Bullish Structures

Most cryptocurrencies exhibit a high correlation with Bitcoin, meaning that when Bitcoin weakens, the broader crypto market tends to decline. However, some cryptocurrencies operate independently of Bitcoin's price movements. These coins are essential for a quality investment and trading portfolio.

In today's analysis, we present an opportunity to invest in such a cryptocurrency under highly favorable conditions.

4-hour time frame analysis

AAVEUSD - 4 Hour Time Frame

Currently, the price of AAVE is positioned at the borderline between the Premium and Discount zones, with the initial sell-side liquidity also being established. For those who prefer a more conservative approach to entering trades, now is a suitable time to open buy positions.

However, a protective stop-loss order should be placed below the external higher bottom of the bullish market structure.

If you're looking for a more aggressive entry point, consider waiting for the price to drop below the Discount level, specifically below the 0.5 Fibonacci level. This would ensure an initial liquidity withdrawal.

During this decline, it's crucial that the price moves into the singular zone of key support. Ideally, this support should remain intact, meaning the price should not close below it on the 4-hour timeframe.

If this decline occurs, you will need to wait for either an Inversion Fair Value Gap (IFVG) to form before entering the position. This would involve the price body of the candle closing above singular resistance.

Alternatively, you can wait for the price to break out of the internal bearish correction structure for the final entry point.