Wave Analysis - AAVE Update (4H)

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Before we begin, I need you to check the previous analysis so you can understand the structure.
I'm not going to go over it all again since I already shared all the technical details recently.

Wave Analysis - AAVE (4H)


At the moment, what you see on the chart is a completed wave (C), which marks the end of a larger-degree wave A or W. This is where the problem starts: we don't know yet which exact type of correction we're going to see in the coming days. It might evolve into a complex W-X-Y structure, a Flat family variation, or simply a standard Zigzag.
Whatever comes next, it won't matter.
We're going UP.

Wave B (or X) will end around the supply box I drew for you on the chart, which sits right at the 50% - 61.8% Fibonacci retracement zone of the current wave A.

The bigger picture:

AAVE is currently developing its macro Wave 2 of a larger impulse on the weekly timeframe.
That's where the confusion starts. The current structure CANNOT be the entire Wave 2 because of strict NEoWave rules:

According to NEoWave's Law of Similarity and Balance (Time & Degree Proportionality), a corrective wave must take more time and build greater structural complexity than the smaller-degree corrections within the preceding impulse. If you look closely at the chart, the entire (A)-(B)-(C) drop took roughly the same or even less time than the internal sub wave (IV) alone. A macro Wave 2 correcting a full 5-wave cycle simply cannot finish faster than its own lower-degree sub-wave (IV). While the price target (liquidity sweep of wave IV) has been met, the TIME requirement is nowhere near complete. Therefore, this 5-3-5 drop is only the first leg (Wave A or W) of a much larger corrective structure designed to consume time before the macro trend resumes.

After this upcoming wave B (or X) relief rally hits our supply zone, we will see one final bloodbath to complete the macro correction. After that, the real war between bulls and bears will begin.

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