-
Avalanche (AVAX) continues its bearish momentum, with critical resistance levels firmly holding against bullish attempts in the market.
-
Even amidst market volatility, trading patterns suggest AVAX’s price may be unable to regain the upward momentum necessary for a sustained recovery.
-
“A daily session close above $24.95 is required to shift the 1-day Avalanche market structure bullishly,” noted a recent analysis from COINOTAG.
Avalanche’s price faces significant resistance as bearish pressures persist; a daily close above $24.95 is essential for a potential market reversal.
Avalanche set to maintain bearish trajectory
The recent performance of Avalanche (AVAX) indicates a persistent bearish market structure. Following a significant rally in November, the price has fully retraced, culminating in a further drop of nearly 14% by February 24th. This trend underscores ongoing selling pressures that have characterized the asset’s trading environment.
Market Analysis and Recent Trends
The trading volume during this decline has been notably high, demonstrating intense market activity amidst the downward trend. As analyzed, the 20 and 50-period moving averages continue to reflect a stable downward trajectory. In particular, the 20-day moving average, currently positioned at $20.29, has functioned as a dynamic resistance level over the past weeks, hindering any bullish advances.
Resistance Zones and Future Projections
Technical analysis reveals a key resistance zone between $20 and $21.7, identified as a bearish order block. Any potential rebound in AVAX’s price is likely to face significant resistance from sellers within this range. Supporting this observation, the Fixed Range Volume Profile indicates that the area surrounding $20.5 to $22.1 serves as a high-volume node, further corroborating the strength of the present resistance against recovery attempts.
Strategic Trading Insights
As the market stands, traders should be cautious. Those with a swing trading approach are advised to look for short opportunities. Targeting a modest price recovery towards $21 might be suitable, with aims to take profit in this area. However, it is important to note that any shift in the prevailing bearish scenario would necessitate a tangible price movement above $22.15.
Conclusion
In summary, Avalanche remains entrenched in a bearish trend, with significant resistance levels likely to prevent any sustained price recovery in the short term. Traders should remain vigilant, monitoring market shifts closely, and prepare to adapt strategies based on emerging trends. Ultimately, without a decisive move above $24.95, the outlook for AVAX will remain pessimistic.
