‎Avalanche (AVAX) Faces Bullish Retracement Within Broader Bearish Structure

‎AVAXUSD Market Analysis- May 9

‎Avalanche (AVAX) is currently undergoing a brief bullish retracement, although the broader market structure remains firmly bearish.

‎Avalanche Key Levels

‎Support Levels: $31.30, $14.50
‎Resistance Levels: $45.50, $60.00

‎AVAXUSD Long-Term Trend: Bearish

‎Since the start of the year, Avalanche has been on a consistent bearish trajectory. Sellers have maintained dominance in the market, and any signs of bullish momentum have been short-lived and quickly overturned.
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‎Recently, the price breached the significant $31.30 demand level, which acted as a strong resistance point. Following this breach, AVAX continued its downward plunge, aiming for the next major demand zone around $14.50. Upon reaching this level, price action showed signs of a bullish reaction, indicating temporary buying interest.
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‎This bullish response is driving the price higher, gradually moving toward the daily Fair Value Gap (FVG), which the market seems intent on filling. However, this bullish momentum is expected to be temporary. The daily Relative Strength Index (RSI) currently signals that the market is nearing overbought conditions. Once the FVG is filled, a shift in market structure is anticipated, likely marking the resumption of the bearish trend.

‎AVAXUSD Medium-Term Trend: Bullish

‎In the 4-hour timeframe, Avalanche is currently in a minor bullish phase. The chart shows a recent bullish break of structure, followed by a price move that respected a key 4-hour order block. This support level helped fuel another bullish break of structure, confirming short-term bullish sentiment. 
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‎However, the 4-hour RSI now indicates that AVAX has reached overbought territory, suggesting a retracement is imminent. Price is likely to pull back toward the 4-hour order block before potentially resuming its short-term bullish crypto signal. Still, it is essential to view this bullish leg as a corrective move within the broader bearish framework.

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