AAVE/USDT — Critical Demand Zone 135–120: Reversal Signal?AAVE/USDT (3D) is developing a highly interesting structure after delivering a strong rebound from the major demand zone at 135–120, an area that has historically served as a large accumulation region for institutional players since 2023.
The long downward wick — clearly a liquidity sweep — shows how the market wiped out stop-losses beneath the zone before snapping back upward. This kind of wick is rarely random; it often signals smart money accumulation exactly where retail traders panic.
Still, despite the sharp recovery toward 180–190, the broader market structure remains in a pattern of Lower Highs, which means the medium-term trend is still technically bearish. AAVE is now positioned at a major inflection point: Is this the beginning of a structural reversal, or only a temporary bounce before another leg down?
---
🔵 Bullish Scenario — Reversal Begins Above 205
The bullish case gains real validity only if price can break and close above the 195–205 resistance cluster on the 3D timeframe.
A decisive breakout here would mark the first Higher High in months and potentially flip the trend.
If the breakout holds, upside targets include:
Target 1: 265–305 (major supply zone)
Target 2: 380–400 (macro swing high)
Target 3: 440+ if DeFi momentum expands
Key bullish confirmations:
Increasing buy volume during the breakout
Strong 3D candle close above 205
A clean retest of 195–205 turning into support
If these align, a full trend reversal becomes increasingly probable.
---
🔴 Bearish Scenario — Breakdown Below 120
The bearish case becomes dominant if price fails to defend the 135–120 demand block and instead closes firmly below 120 on the 3D timeframe.
If that happens, the mid-term downtrend likely resumes with the following targets:
Target 1: 99–84
Target 2: 70 (previous liquidity sweep low)
Target 3: 62 if capitulation expands
This scenario would suggest that the prior liquidity sweep was not a reversal signal but rather preparation for a deeper markdown phase.
---
📌 Key Patterns & Structural Notes
Liquidity Sweep: The long wick beneath the demand zone signals wiped-out liquidity and possible institutional absorption.
135–120 Demand Block: A crucial accumulation area that currently serves as the final defense for buyers.
Lower High Structure: Trend remains bearish until 205+ is reclaimed.
Range Market: Price is currently oscillating within a broader 120–225 range; a breakout of either side will determine the next macro move.
---
🎯 Final Summary
AAVE is now at one of its most important decision zones of the past year.
Break above 205 → bullish trend shift
Break below 120 → bearish continuation and deeper lows
Until one of these triggers is activated, AAVE remains in accumulation/consolidation mode, preparing for its next major directional move. Swing traders typically wait for one of these confirmations before entering large positions.
---
#AAVE #AAVEUSDT #CryptoAnalysis #PriceAction #TechnicalAnalysis #SupplyDemand #LiquiditySweep #DeFi #Altcoins #CryptoMarket
