AAVE/USDT – Reaction-Based Analysis (1H)

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AAVE/USDT – Reaction-Based Analysis (1H)AAVE / TetherUSBINANCE:AAVEUSDTBKVIPAAVE delivered a clean and technically healthy reaction after tapping into a well-defined demand zone. Price was aggressively defended on the first sweep, followed by a sharp displacement to the upside, signaling strong reactive buying rather than passive absorption. After the impulsive bounce, AAVE transitioned into a controlled consolidation above the reclaimed level. This is a key detail. Instead of immediate distribution or a fast rejection, price is holding above the former range lows, suggesting acceptance and a potential shift in short-term structure. The current behavior points to: - Sellers losing control after the breakdown attempt - Buyers stepping in decisively at demand - A compression phase forming above the reaction zone, often seen before continuation or expansion As long as price remains above the reclaimed level, the bullish reaction remains valid. A loss of this area would invalidate the setup and suggest the move was purely corrective. Overall, this is a textbook example of reaction → reclaim → hold, which often precedes the next directional move. Expansion is likely once the current range resolves.