Aave

AAVE Ending Diagonal?

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We have some more clarity with the local AAVE pattern and it does appear to be an Elliot wave ending diagonal. After a strong wave 3 ending diagonals form as a terminal pattern with a thrust above the trend line threshold and drop back down to complete a higher degree motif wave 1.

The following retracement has a high probability of terminating at the wave 4 bottom which in this case is at the High Volume Node support and 0.5 Fibonacci retracement at $210.

RSI has printed a series of bearish divergence from overbought but this took a long time to play out!

Analysis is invalidated if price breaks above $400.

Safe trading

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