The recent price action of Avalanche (AVAX) indicated that the downtrend was losing momentum, leading to speculation about the potential for a market recovery in the coming months. President Donald Trump’s announcement of a 90-day tariff pause provided some relief in the short term, with Bitcoin (BTC) up 7% and Avalanche experiencing a 10.3% bounce. Despite the ongoing bearish trend, technical analysis suggested that AVAX could be forming a long-term bottom, with a potential consolidation around the $15-$17 range.
On the 1-day chart, AVAX’s bearish trend was slowing down, with a recent sell-off pushing it to $14.66. The volume profile indicated a critical demand zone between $15 and $17, with resistance at $18.7. The market sentiment suggested that if the price falls below $14.5, it could lead to further downward movement, while defending the $15-$17 range could pave the way for a recovery. The consolidation phase between $15 and $23 in the past month hinted at a possible stabilization after the previous downtrend.
The 30-day liquidation map revealed a higher number of long liquidations compared to short ones, signaling potential liquidity gathering at levels like $18.18, $17.76, and $16.74 before a price rebound. The clusters at $19 and $20 served as magnetic zones for monitoring potential bearish reversals. It is important to note that the information provided does not constitute financial advice and is solely the writer’s opinion.
In conclusion, the recent price action and technical analysis of Avalanche (AVAX) suggested a possible stabilization in the market, with signs of the downtrend losing momentum. The $15-$17 range appeared to be a critical demand zone, with resistance at $18.7. The presence of high-leverage liquidation levels and potential liquidity gathering at key points indicated a short-term price rebound. Investors should remain cautious and monitor market developments closely to gauge the potential for a recovery in the coming months.
