Avalanche (AVAX) may be preparing for a significant price reversal after experiencing a 60% decline since December 2024. Top analyst Ali Martinez has identified a promising buy signal on the weekly chart that could mark the end of the current bearish trend.
Technical Analysis Points to Potential Recovery
The TD Sequential indicator has flashed a buy signal on AVAX’s weekly timeframe. This technical development carries substantial weight, as weekly signals often precede major trend reversals. The indicator’s reliability in identifying exhausted downtrends makes this signal particularly noteworthy.
AVAX currently trades at $25.6, consolidating between critical price levels. The asset faces immediate resistance at $27, with a more significant barrier at $28.7. Breaking above these levels could confirm a trend reversal and trigger renewed buying interest.
Key Price Levels to Watch
Support levels have formed at $25 and $23. Bulls must defend these zones to maintain recovery momentum. A break below $23 could extend the bearish trend toward $20. The market structure suggests a decisive move is imminent.
Recent market data shows increasing institutional interest in Avalanche’s ecosystem. The network’s technical fundamentals remain strong despite price weakness. This combination of technical signals and fundamental strength could support a sustained recovery.
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Market Implications
The convergence of technical and fundamental factors suggests AVAX could be approaching a significant turning point. Traders should monitor the $27 resistance level closely. A breakthrough could trigger a broader market recovery phase.
Volume patterns indicate growing interest at current price levels. Institutional positioning shows accumulation during recent weeks. These factors support the possibility of a trend reversal.
Tags: #AVAX #AvalancheNetwork #CryptoTrading #TechnicalAnalysis #CryptoMarkets
Source: NewsBTC