AVAX Analysis: Bearish Momentum and Key Levels to Watch This Week for Avalanche Traders

• Avalanche’s market performance is currently underwhelming, with capital inflows remaining tepid and bearish momentum dominating the one-day timeframe.
• The critical support at the mid-point of its trading range, $36, is under threat, but bulls are struggling to hold the line.
• Trading activity suggests futures traders lack confidence, as demonstrated by the subdued trading volume and resistance to long positions.

Explore the latest developments in Avalanche’s market performance, analyzing key support levels and trading behaviors for a comprehensive outlook.

Analyzing the Weekly Trading Range of Avalanche

As of the most recent Monday, Avalanche’s (AVAX) high and low were recorded at $36.27 and $34.56, respectively. This often sets the parameters for the week’s trading range, a phenomenon that occurs with short-term market fluctuations.

During the past couple of months, Avalanche has oscillated within a defined range. In the short term, however, it exhibited some bullish momentum by breaching the Monday’s high on Wednesday. Currently, bulls are attempting to hold the mid-range support level at $36.

Interpreting Liquidation Level Insights

Analyzing liquidation levels provides critical insights into potential market movements. The cumulative liquidation levels delta is positive, indicating a likelihood of a northward liquidity hunt. The volume of long liquidations surpasses short ones, hinting at a potential bounce aimed at liquidating these long positions.

The liquidity cluster around $37.06 emerges as a pivotal short-term target. Scalpers might capitalize on this price bounce to initiate short positions close to the $37 mark, aiming for a decline towards $34.5 or even lower.

Conversely, swing traders and long-term investors might consider re-entry around the $30-$32 region or wait for a robust breakout beyond the $40 range high, contingent on a firm breakout which may not offer an immediate pullback.

Conclusion

In summary, Avalanche’s trading dynamics reveal a cautious sentiment among futures traders, with critical support levels under pressure. Insights from liquidation levels suggest potential short-term price movements, offering strategies for both scalpers and swing traders. Investors should monitor these levels closely to navigate this volatile market effectively.