‎Avalanche (AVAX) Begins Bullish Reversal Amid Short-Term Bearish Correction

‎AVAXUSD Market Analysis – August 3

‎Avalanche (AVAX) initiates the early phase of a bullish reversal, following a key breakout above its long-standing bearish trendline, despite undergoing a short-term corrective pullback.

‎AVAXUSD Key Levels

‎Support Levels: 22.80, $14.20
‎Resistance Levels: $31.00, $36.80

‎AVAXUSD Long-Term Trend: Bullish

‎Avalanche (AVAX) has recently shifted from a prolonged bearish trend into the early stages of a bullish reversal. The bearish momentum, which dominated the market through the early part of 2025, began to weaken by April as AVAX experienced a notable bullish surge, pushing price toward a descending daily trendline resistance.
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‎In July 2025, this key bearish trendline was decisively broken, signaling a change in overall market structure and confirming a shift toward bullish sentiment. However, despite the breakout, the current price action shows a pullback as AVAX retraces from the broken trendline resistance toward the newly established trendline support.
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‎The daily Relative Strength Index (RSI) reflects this corrective move, showing a weakening in bullish momentum. This retracement is viewed as a healthy retest of support within the early phase of a bullish breakout, with expectations for the uptrend to resume once support is confirmed.

‎AVAXUSD Medium-Term Trend: Bearish

‎On the 4-hour timeframe, AVAX is undergoing a short-term bearish correction. Price recently broke below the $22.80 support level, reflecting strong selling pressure as it continues descending toward the daily trendline support.
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‎The 4-hour RSI currently shows that the asset recently entered the overbought region, reinforcing the short-term bearish outlook. While the price has yet to touch the daily trendline support, a minor bullish retracement toward the $22.80 zone may occur before a possible continuation of the decline. This move could set the stage for a stronger bullish resurgence from a more confirmed support level.

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