As Bitcoin hovers below $95,000, Avalanche (AVAX) is indicating a bullish potential. The token has faced a series of lower highs and lows after hitting resistance around the $22 mark. Despite a challenging market, a hidden bullish divergence in AVAX's price could suggest a rebound is possible. The price recently attempted to establish a higher low after being rejected from a significant neckline zone, presenting opportunities for short positions amidst market declines. Current trends indicate that the AVAX price could experience a decrease towards its lower range, which might complete a double-top formation, adversely affecting its long-term outlook.
Technical indicators provide mixed signals for AVAX. Following a major pullback in March, the bears have kept prices below $22, raising concerns about the strength of the bulls. The Bollinger Bands have tightened, suggesting reduced volatility as trading volumes decline. Notably, the Chaikin Money Flow (CMF) has shown signs of recovery, deviating from levels not seen since July 2024. Historically, when the weekly CMF bounces back from levels below -0.15, AVAX has experienced significant rallies, often leading to price increases of nearly 200%. If AVAX can close above $20 for a few days, it may validate a breakout above $22, potentially leading to a rise above $25. Conversely, failure to breach these levels could result in continued consolidation below $22 until bullish momentum gathers strength.
Technical indicators provide mixed signals for AVAX. Following a major pullback in March, the bears have kept prices below $22, raising concerns about the strength of the bulls. The Bollinger Bands have tightened, suggesting reduced volatility as trading volumes decline. Notably, the Chaikin Money Flow (CMF) has shown signs of recovery, deviating from levels not seen since July 2024. Historically, when the weekly CMF bounces back from levels below -0.15, AVAX has experienced significant rallies, often leading to price increases of nearly 200%. If AVAX can close above $20 for a few days, it may validate a breakout above $22, potentially leading to a rise above $25. Conversely, failure to breach these levels could result in continued consolidation below $22 until bullish momentum gathers strength.
