Avalanche ($AVAX ) is navigating a complex wave pattern against Tether (USDT), reflecting the volatile nature of cryptocurrency markets. Currently trading at $35.29, the daily chart suggests the asset is at a pivotal support level, with potential for either a bullish rebound or a deeper bearish correction.
Price Action and Key Levels
AVAX's zigzag pattern highlights fluctuating investor sentiment. The price is testing a critical support zone at $31.22, a level that could determine the next major move.
Resistance Levels:
R1: $43.43 – A near-term barrier that, if breached, could signal a bullish recovery.
R2: $56.20 – Breaking above R1 could pave the way for stronger upward momentum.
Support Levels:
S1: $31.22 – The current level being tested; holding above this is crucial for a bullish scenario.
S2: $20.30 – A break below S1 may lead to a significant downturn toward this lower support.
Technical Indicators
MACD: The MACD remains below zero, signaling bearish momentum, though a narrowing histogram suggests weakening bearish pressure.
RSI: Hovering around the midpoint, the RSI indicates neutral conditions, pointing to market indecision.
Volume: Moderate trading volume aligns with the current consolidation phase, reflecting limited conviction in recent price moves.
Forecast and Trading Strategy
Bullish Scenario: A bounce off the $31.22 support could drive AVAX toward $43.43, with $56.20 as a secondary target if bullish momentum intensifies. Increased volume and positive signals from indicators would strengthen this case.
Bearish Scenario: A breakdown below $31.22 could open the door for a decline to $20.30, requiring close monitoring of bearish indicators and increased selling pressure.
Conclusion
AVAX/USDT is at a crucial inflection point. The asset’s response to its immediate support at $31.22 will likely shape its near-term trajectory. Traders are advised to stay vigilant, leveraging technical indicators and volume analysis to refine their strategies in this volatile market.
