AVAX Shows Bullish Divergence Amid Bearish Trend, Potential Price Bounce Towards $24 May Be Possible

• Avalanche (AVAX) has demonstrated interesting behavior in its price movements recently, highlighting a potential bullish divergence amidst ongoing bearish trends.

• The coin’s price has consistently struggled during February, which may offer traders insight into future resistance and support levels.

• “A market structure shift would happen when the AVAX token can set higher swing highs and lows,” noted a COINOTAG analyst during a recent market review.

Explore the latest analysis of Avalanche’s price trends and potential movements, focusing on key levels affecting traders and market sentiment.

Understanding the Technical Landscape of AVAX

Avalanche’s [AVAX] current market trend is indeed reflective of broader **bearish sentiments** within the cryptocurrency sector. The **100% retracement level at $22.35**, previously marking the November lows, has now flipped to become a significant resistance level. Currently, AVAX’s next key support is observed at **$19.73**, a point of historical significance that traders should monitor closely.

The Impact of Momentum Indicators on AVAX

As AVAX prices approached the **$20 psychological level**, a key technical indicator drew attention—the **MACD** (Moving Average Convergence Divergence). The price action exhibited lower lows, while the MACD suggested higher lows, indicating a possible bullish divergence. Such a divergence can often signal that a price bounce is on the horizon, offering a potential trading opportunity. However, it is crucial to underscore that this situation does not guarantee an immediate reversal of the existing downtrend.

Resistance Levels and Liquidation Insights

Source: Coinglass

Recent liquidation data indicates that **$27.4** is a strong resistance zone for AVAX, making the **$23.7-$24 region** a viable short-term target for traders. As market conditions fluctuate, traders should also be aware of the potential volatility stemming from Bitcoin’s [BTC] price movements, particularly its recent rebound above **$85k**.

With the imminent risk of a BTC price drop, there remains a possibility for AVAX to revisit the **$19.7-$20 support region**. Hence, employing careful risk management strategies would be prudent for those trading in these uncertain conditions.

Conclusion

In summary, the AVAX market exhibits signs of crucial resistance and support levels which traders must pay close attention to. The potential for a price bounce is hinted at by bullish divergences in momentum indicators, though a shift in overall market structure is essential for a sustained recovery. By keeping abreast of market movements and understanding key support and resistance levels, investors can better navigate the evolving landscape of Avalanche and the broader cryptocurrency market.