- AVAX has not yet broken its bearish structure on the one-day chart
- There could be a dip in the coming days, and the highlighted demand zone is a key area of interest
Avalanche [AVAX] witnessed a strong rebound from the $31 support zone. The stock fell to $31.12 on January 8, but has risen 24% since then. The network also reached a record number of monthly active users.
Avalanche’s network also saw a rise in NFT activity. New NFT coins are expected to contribute significant volume and activity to a network. This could attract creators to the network and drive greater demand for AVAX.
The market structure has not yet turned bullish
Source: AVAX/USDT on TradingView
The one-day price chart has been bearish since December 27, when AVAX fell below the low at $43.34. At the time of writing, the recent low of the downward move since then stood at $39.45, highlighted in green.
A daily session close to this level has not yet taken place. If so, it would make the $33.08-$35.87 (cyan box) a bullish order block. Although the structure was technically bearish, the descending trendline resistance (yellow) has been broken.
A move above $39.45 and a dip to the bullish order block or descending trendline to retest it as support would provide an ideal buying opportunity. The Fibonacci levels (light yellow) marked the $42.76 and $45.93 levels as firm resistances.
The chances of another dip in search of liquidity seem good
Source: Hyblok
AMBCrypto analyzed the data from Hyblock’s liquidation level chart. The Cumulative Liq Levels Delta was positive over the past 24 hours. This suggested that the number of long liquidations was higher. It presented an attractive opportunity for prices to chase liquidity by moving south and forcing long positions to close.
How much is 1, 10 or 100 AVAX worth today?
In the South, the $38.2 and $37.7 levels saw multiple liquidation levels of $2 million or more. Further out, the $35.7-$36.3 range also has a significant number of liquidation levels. Therefore, traders should beware of a price drop in the short term. From a one-day price action perspective, a move to $35 would be ideal as it would be a good place to long AVAX.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.