Avalanche (AVAX) Signals Bullish Reversal as Market Sentiment Shifts

‎‎‎AVAXUSD Market Analysis- April 27

‎The first quarter of the year was marked by a significant bearish decline for Avalanche (AVAX), with the price consistently struggling to break above the critical resistance level at $41.50.

‎AVAXUSD Key Levels

‎Support Levels: $22.90, $14.50
‎Resistance Levels: $31.00, $41.50

‎‎Avalanche (AVAXUSD) Long-Term Trend: Bullish

This persistent failure triggered a downward spiral, resulting in the formation of major lower lows, deepening the bearish sentiment in the market. However, momentum has recently shifted as AVAX approached the $14.50 demand zone, following a breach below the $22.90 support level.
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‎‎A strong bullish reversal occurred at this stage, characterized by the price breaking through the long-standing bearish trendline. Notably, a reverse head and shoulders pattern has emerged during this move, a classical technical indicator signaling a potential bullish trend reversal in the crypto signal.
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‎Supporting this outlook, the daily Relative Strength Index (RSI) is now reflecting rising momentum, reinforcing the bullish narrative. Additionally, the daily Moving Average indicator has shifted into a positive alignment, with the price currently trading above it—another strong confirmation of a bullish stance. Looking ahead, AVAX is expected to recover the $22.90 zone, which will likely serve as a springboard for further bullish expansion over the coming weeks.

‎Avalanche (AVAXUSD) Medium-Term Trend: Bullish

‎On the medium-term outlook, recent bullish momentum saw AVAX prices rally towards the $22.90 level. However, buyers lacked sufficient strength to drive the price beyond this resistance zone, resulting in a temporary stall in upward movement.
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‎The 4-hour Relative Strength Index currently indicates that AVAX has entered an overbought region, correlating with the visible slowdown in bullish momentum. This condition suggests a potential short-term retracement is imminent, which is not unusual in a recovering market.
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‎A likely retracement is expected to activate the 4-hour order block, providing a healthy correction before the continuation of the bullish trend. Once this retracement concludes, AVAX is anticipated to regain momentum and successfully breach the $22.90 barrier, paving the way for a stronger bullish run.

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