AVAX Breaks Free: A Potential Bullish Reversal on the Horizon
AVAX has finally escaped the bearish grip that has held it down for months. This could signal a major shift in its price trend.
For a long time, Avalanche (AVAX) was under pressure from a descending support/resistance level. This level has been keeping prices low since February. However, AVAX has now broken through this resistance with strength. This move came after a swing failure pattern at the lows, a common sign of a trend reversal. Prices quickly reclaimed key levels, showing strong buyer interest.
Here are the key points:
- AVAX has flipped dynamic support/resistance into support, hinting at a bullish structure.
- Reclaiming the value area high adn point of control boosts momentum.
- The next step is confirming a higher low above the flipped SR zone.
Breaking above the dynamic resistance is significant. It breaks a multi-month trendline. Buyers stepped in with conviction, shifting the momentum.
price action is establishing a higher high. The next critical step is whether AVAX can hold above the flipped resistance zone.
Volume profile readings support this bullish outlook. An uptick in participation during the breakout is a good sign. This move isn’t just a short squeeze but could be the start of a sustainable uptrend.
If AVAX forms a clean higher low above the flipped SR resistance, the bullish structure will be confirmed. this could lead to a move toward the $28.70 region.Tho, if it fails to hold the current breakout zone, it might very well be a false breakout. Price action must be closely monitored in the coming days.
