‎Avalanche (AVAXUSD) Poised for a Potential Bullish Recovery After Sharp Correction

‎AVAXUSD Market Analysis- October 11

Avalanche (AVAXUSD) has shown signs of exhaustion in its recent bearish correction, setting the stage for a potential bullish resurgence.

‎AVAXUSD Key Levels

‎Support Levels: $20.00, $13.00
‎Resistance Levels: $27.10, $35.50

‎AVAXUSD Long-Term Trend: Bullish

‎Avalanche (AVAX) experienced a complete reversal of its prior bullish trend after the structure was compromised. Price failed to retest the $13.00 demand zone and instead recovered strongly above the $20.00 demand level, initiating a renewed bullish rally. This rally saw the market break through the $27.10 resistance before reaching as high as the $35.50 supply zone.
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‎However, once price reached the $35.50 supply level, the daily Relative Strength Index (RSI) indicated overbought conditions. A failed high pattern soon followed, triggering a significant price reversal. The decline was sharp and volatile, as sellers aggressively pushed price downward—breaching the $27.10 level and reclaiming the $20.00 demand zone.
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‎At present, Avalanche has entered the oversold region on the daily RSI, hinting at the likelihood of bullish momentum ahead. For this momentum to materialize, price must first establish a structural cushion and confirm a bullish structure shift before resuming upward movement.

‎AVAXUSD Medium-Term Trend: Bearish

‎On the 4-hour timeframe, AVAXUSD clearly reflects recent bearish pressure, marked by a decisive break of structure that triggered a downward continuation. During this decline, a 4-hour order block was left unmitigated, suggesting that price may eventually retrace to retest this level.
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‎For this retracement to occur, a clear bullish structure shift will first be required. Given that the RSI on the 4-hour chart remains well below the oversold threshold, there is a growing possibility of a significant bullish recovery in the near term.

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