The AAVE market has shown some interesting dynamics recently. The price is closely tied to the upper edge of the middle band of the Bollinger Bands, while the chips have quietly flowed back from the high position to the POC (Point of Control). The contract market has seen a net outflow for five consecutive days, but the spot market shows that funds are secretly accumulating. This contradiction between appearance and substance makes one wonder: Are we facing a situation of "false fall and true rise"?

From the price structure perspective, the POC area at $285.85 has attracted a trading volume of 443,000 over the past two weeks. Although there is some selling pressure above, buying is still providing continuous support. Four high volume nodes (HVN) between $283.5 and $287.6 have formed a potential upward support. If the price can hold this area during a pullback, it might be a signal for bulls to exert their strength.

Currently, the AAVE price is hovering in the key range of $290.6 to $291.8, which is the battleground for bulls and bears. If it can break through $292.4 forcefully, it may open up greater upward potential. It is worth noting that there is a low trading volume "vacuum zone" in the range of $313 to $318; once it breaks through here, the price is expected to surge directly to $330.

From the market cycle perspective, AAVE seems to still be in the third wave of a medium-term bull market, with the daily chart showing an "ascending triangle" pattern. The current fluctuation may be the end of this pattern, and a breakthrough of 330 USD would further confirm the continuation of the main upward trend.

However, investors also need to be cautious of risks. If the price falls below $281.7 on high trading volume, the bullish pattern may be challenged and could even turn bearish at $275.

For investors considering participating in AAVE trading, the following strategies may be considered: look for entry opportunities in the range of $285 to $286 (near the POC plus the middle band of the Bollinger Bands), set the stop loss at $281.7, and target a price level of $300. This strategy offers a relatively balanced risk-reward ratio.

Overall, the AAVE market is at a critical decision point. The trend in the range of $287 to $292 is likely to determine the direction in the short term. Investors need to closely monitor the trading volume and price movements within this range to seize potential trading opportunities.