Avalanche broke through the resistance line of the upward channel model on November 22, but the bulls are facing selling pressure at higher levels.
AVAX/USDT daily chart | Source: TradingView
The AVAX/USDT pair may retest the breakout level from the channel. If the price strongly rebounds from the resistance line, it indicates that the bulls have turned this level into support. Then, the pair may attempt to rise to $50.
Conversely, if the price breaks below the resistance line, it indicates that the bulls are losing control. The pair may drop to the 20-day EMA at $34.34, where it could attract buyers back.
AVAX/USDT 4-hour chart | Source: TradingView
On the chart, the pair is witnessing a fierce battle between the bulls and the bears near the EMA 20 line. If the price breaks above the EMA 20 line, the bulls will try to push the pair back to the psychological level of $50.
Meanwhile, the bears will try to sell during recoveries and pull the pair below the SMA 50. If successful, the pair could drop to $32 and then to $31.