- AAVE is a major DeFi protocol for decentralized lending and borrowing
- Daily structure shows bullish momentum, with price targeting a liquidity pool and possibly a supply zone above
- On the H4, the bullish bias remains valid until a key low breaks. Potential upside target? Around $312
Let’s kick this off with a quick refresher: AAVE is one of the OGs in the DeFi world.
Born from the idea of decentralized lending and borrowing, it allows users to earn interest on deposits and borrow assets with zero middlemen.
Aave has been a key player in reshaping traditional finance with smart contracts—kind of like giving banks a run for their money, but without the glossy offices.
Alright, now let’s dive into what really matters to us traders: price action.
Zooming Out: The Daily Outlook
When we look at the daily chart, the structure is pretty clear—higher highs, higher lows, and a steady bullish rhythm. No need to overcomplicate it. Price is climbing like it means it.
But here’s where it gets interesting.
On the left side of the chart, there’s a chunk of untouched liquidity that’s just sitting there, begging to be taken.
And if price is heading in that direction, it could very well be on a mission to grab that liquidity before it even considers turning around. It’s like a magnet—and if you’ve been in the game long enough, you know how often price goes sniffing for these levels.
Above that zone? There’s a supply area looming, and yes, AAVE might just be bold enough to test it.
Stepping In: The H4 Story
Drop down to the H4 and things get a bit more tactical.
Right now, the structure is still bullish. No argument there. That low hasn’t been broken yet, so for now, the uptrend remains intact.
If the market holds this structure and continues on its current trajectory, we might be looking at a push toward $312, which lines up with the supply zone I mentioned earlier.
It’s not a guarantee—because nothing in trading ever is—but it’s a clean, possible scenario that I’m personally keeping an eye on.
That said, this reminds me of one of those moments where everything looks like it’s aligning… and then boom, the market does something completely unexpected. Been there? Yeah, me too. More times than I’d like to admit.
Final Thoughts: Trade What You See, Not What You Hope
Let’s be real—we don’t have certainty. And that’s okay.
Trading isn’t about knowing exactly what’ll happen next—it’s about recognizing potential paths, setting up scenarios, and then being ready for whatever comes.
So, while AAVE looks bullish for now and has room to run into that $312 supply zone, don’t bet the house. Stay flexible.
Because if there’s one thing I’ve learned over time, it’s this: the market does what it wants, when it wants. And your job? Read the clues, adapt, and protect your capital.
