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The recent technical analyses and market indicators suggest that Avalanche (AVAX) might be forming a critical price consolidation zone.
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This period of reduced selling pressure could signify a more stable phase for AVAX, potentially paving the way for future price recoveries.
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“If the price remains within the $15-$17 range, it could solidify a foundation for a long-term upward trend,” noted analysts from COINOTAG.
Explore the latest insights on Avalanche (AVAX) as technical indicators suggest potential for price stabilization and recovery amid reduced selling pressure.
Is Avalanche forming a long-term bottom?
The recent price action of Avalanche indicates a crucial juncture where **consolidation** could lead to a strengthening trend. Despite the bearish outlook remaining dominant, analysts are observing a gradual slowing of the downtrend over the past month. The established lows of $15.27 and recent fluctuations around $14.66 emphasize the need for attention in analyzing support levels for potential reversals.
Source: AVAX/USDT on TradingView
The technical indicators reveal that the Point of Control at $18.7 is serving as a significant psychological resistance. The value area’s upper bound at $39.3 and lower bound at $15.4 further emphasize the possible critical demand zone between $15 and $17. Analysts recommend monitoring price movements closely, as significant fluctuations below $14.5 could trigger another selling wave.
A Potential Path to Recovery
While the price has mirrored a pronounced downtrend over the prior months, signs of stabilization suggest a viable path toward recovery. The **consolidation phase** established in recent weeks between $15 and $23 may represent a cautiously optimistic environment for investors. Should AVAX bulls manage to defend support in the $15-$17 range, this could ignite further bullish momentum.
Source: Coinglass
The 30-day liquidation map indicates that long positions are being liquidated more frequently than shorts, which adds another layer of complexity to the current market environment. Liquidation points around $18.18 and $17.76 could serve as short-term price targets, with the potential for a liquidity gathering dip before a rebound. As AVAX hovers near these critical levels, paying attention to support and resistance dynamics will be vital for traders.
Conclusion
The situation surrounding Avalanche (AVAX) underscores the importance of attentive market analysis. As price consolidates within defined boundaries, investors are encouraged to remain vigilant and adaptive. Ultimately, the development of a sustained recovery will hinge on whether bulls can defend critical support levels and whether the prevailing bearish sentiment continues to wane. The unfolding price action will be key, as market participants navigate this evolving landscape.
