‎Avalanche (AVAXUSD) Faces Temporary Recovery Within a Dominant Bearish Framework

‎AVAXUSD Market Analysis- October 18

‎Avalanche faces a temporary recovery within a dominant bearish framework, as price action shows signs of a short-term pullback from oversold conditions.

‎‎Avalanche Key Levels

‎Support Levels: $20.20, $13.40
‎Resistance Levels: $27.90, $37.50

‎AVAXUSD Long-Term Trend: Bearish

‎In the early quarter of 2025, Avalanche experienced a decisive bearish shift, with March marking the point where sellers firmly took control of the market. This transition established a broader bearish sentiment that continues to define the current price structure.
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‎By late June 2025, price action staged a temporary bullish move, breaking above the $27.90 level before reacting sharply at a daily bearish order block. This upward movement proved short-lived as price eventually lost momentum, breaching the underlying bullish trendline and confirming the resumption of the dominant bearish trend.
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‎Currently, AVAXUSD is testing the $20.20 demand level, which has offered minor support. The daily Relative Strength Index (RSI) signals that price is in the oversold region, suggesting the potential for a short-term corrective bounce. However, the broader directional bias remains bearish, and any recovery is likely to be temporary before sellers regain control.

‎AVAXUSD Medium-Term Trend: Bullish Correction

‎Despite the prevailing bearish structure, short-term momentum points toward a possible bullish correction. Both the daily and 4-hour RSI readings show price oversold conditions, hinting at a potential relief rally.
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‎In the coming sessions, ‎Avalanche is expected to retrace higher toward the $27.90 supply zone while maintaining support around the $20.20 demand level. This movement would represent a technical pullback within the larger bearish framework, offering a temporary phase of price recovery before the next leg down resumes.
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