AAVE forms a clear ascending deposit structure after bouncing from the lower demand zone. The price is making higher highs and higher lows, but the range is tightening, indicating a loss of bullish momentum as it pushes towards the main downtrend line.
This ascending deposit is developing against the resistance of the higher time frame, increasing the likelihood of rejection. If the price fails to break and hold above the downtrend line, the structure is likely to resolve downward. In this case, the next major demand zone is around sixty to sixty-five.
For the bullish scenario, AAVE must break above the descending trend line with strong acceptance and volume. Such a move would invalidate the bearish deposit structure and open the way towards the resistance area from two hundred to two hundred and five.
This setup is driven by the dynamics of the bullish deposit, the convergence of trend lines, and structural pressure. The reaction at resistance will determine whether the price continues to rise or resumes the broader bearish trend.
Confirmation is necessary before taking directional trades.