AAVE is currently moving within an ascending channel on the daily chart, and the price is approaching the key support level at the channel's bottom.
This is crucial. If AAVE breaks through and confirms a break, it will likely continue to fall, creating a short position. Conversely, as long as it remains above the channel's bottom, there's still a chance it could rebound to the middle or even the top.
The overall strategy is simple: Don't rush into shorting. Only consider shorting after it has actually broken through the support level and confirmed it.