Avalanche Consolidates Within Bearish Structure as Downside Pressure Builds

‎AVAXUSD Market Analysis- August 23

‎Avalanche (AVAX) continues to trade under bearish conditions, with price consolidating within a defined range while signaling the likelihood of renewed downside movement.

‎AVAXUSD Key Levels

‎Support Levels: 14.60, $6.50
‎Resistance Levels: $26.50, $36.00

‎AVAXUSD Long-Term Trend: Bearish

‎Avalanche established a strong bearish bias in March 2024 when price experienced a significant break of structure that shifted overall market sentiment to the downside. Since then, the market has been locked in a consolidation phase, ranging between the $26.50 supply zone at the top and the $14.60 demand zone at the bottom. This range has served as the battleground for buyers and sellers, with no decisive breakout yet occurring.
‎
‎Currently, AVAX has reached the upper boundary of this consolidation range, where bearish pressure is expected to intensify. The rejection from the supply peak suggests that sellers are defending this level aggressively, setting the stage for price to retest the $14.60 demand zone. If this bearish momentum holds, the downside bias will remain intact as long as price remains trapped below the $26.50 resistance.
‎
‎The Relative Strength Index (RSI) further strengthens this outlook, showing a decline toward the oversold region. This indicates weakening bullish strength and provides confluence for the expected bearish continuation. Unless buyers are able to break and sustain price above the consolidation peak, the probability of another bearish leg remains dominant in the long-term structure.

‎AVAXUSD Medium-Term Trend: Bearish

‎On the 4-hour timeframe, Avalanche presents early signs of a bearish reversal. Price had previously rallied from the $14.60 demand zone, forming higher lows while respecting a bullish trendline. However, this bullish structure has now been breached, suggesting that the short-term bullish momentum has been exhausted and a change in trend is underway.
‎
‎As price breaks below recent support levels, the likelihood of forming lower lows becomes stronger. The 4-hour RSI also reflects this shift, signaling declining price strength and confirming the weakness of buyers. Together, these factors point toward a bearish continuation, with AVAX expected to extend its decline in the medium term.

‎Make money without lifting your fingers: Start using a world-class auto trading solution 

How To Buy Lucky Block

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.