$AVAX The recent long liquidation of $46.599K at $38.5752 suggests a significant sell-off, pushing the price down to this level. Such liquidations often indicate either panic selling or weak market sentiment. However, they can also create opportunities for a reversal or continuation depending on market dynamics.
Current Market Sentiment.
Price Level: Close to $38.5752.
Trend: Bearish in the short term due to liquidation, but potential reversal possible if key support levels hold.
Volume: Monitor for increased buy volume around support zones.
Key Zones for $AVAX.
Buy Zone:
$36.50 - $38.00: This zone is critical as it acts as strong historical support. Buying here can be safer if there are signs of bullish momentum.
Targets:
First Target (T1): $40.50 (nearby resistance level)
Second Target (T2): $43.00 (higher resistance level)
Third Target (T3): $46.50 (major resistance zone from the previous liquidation level)
Stop Loss (SL):
Place your stop loss at $35.90, slightly below the support zone, to minimize risk in case of further downside.
Trading Plan for $AVAX
1. Wait for Confirmation: Look for bullish signals such as strong green candles, increased volume, or RSI moving out of the oversold region.
2. Enter the Trade: If $AVAX stabilizes in the buy zone ($36.50 - $38.00) with positive signs, initiate a long position.
3. Risk Management: Always maintain the stop loss at $35.90 to limit losses.
4. Target Booking: Book partial profits at each target and trail the stop loss to lock in profits as the price moves up.
Key Indicators to Watch.
RSI: If the RSI is below 30, it indicates oversold conditions, which could lead to a potential bounce.
Volume: A spike in buying volume around the buy zone will confirm bullish activity.
Moving Averages (EMA/SMA): Monitor the 50-day and 200-day EMAs for crossover signals indicating trend changes.
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