- AVAX has yet to break the bearish structure on the 1-day chart.
- There may be a downward trend ahead and the highlighted demand zones are the key areas of interest.
Avalanche (AVAX) witnessed a strong bounce from the $31 support zone. It fell to $31.12 on January 8, but has risen 24% since then. The network also recorded record numbers of monthly active users.
Avalanche’s network has also seen a surge in NFT activity. The new NFT Mint is expected to contribute significant scale and activity to the network. This could attract creators to the network and drive more demand for AVAX.
The market structure has not yet reversed to strength.
Source: AVAX/USDT on TradingView
The daily price chart has been bearish since December 27, when AVAX fell below its low of $43.34. As of press time, the latest low in the subsequent decline was $39.45, shown in green.
No daily session has yet occurred closing above this level. If so, $33.08-$35.87 (turquoise box) would be a bullish order block. The structure is technically down, but the downtrend line resistance (yellow) has been broken.
A move above $39.45 and a bullish order block or retest of the descending trend line as support would present an ideal buying opportunity. Fibonacci levels (light yellow) mark the $42.76 and $45.93 levels as firm resistance.
It seems likely that it will fall again in search of liquidity.
Source: Hiblock
AMBCrypto analyzed data from Hyblock’s liquidation level chart. Cumulative liquid level delta has been positive over the past 24 hours. This means there are more buy liquidation levels. This presented an attractive opportunity to hunt for liquidity as the price fell south and forced the buying end.
How much is 1, 10 or 100 AVAX worth today?
In the south, there were several clearing levels above $2 million, at the $38.2 and $37.7 levels. Further down, there are also significant liquidation levels in the $35.7-$36.3 range. Therefore, in the short term, traders should watch out for price declines. From a one-day price action perspective, the ideal would be a move to $35, which would be a good place to buy AVAX.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.