‎Avalanche Shows Early Signs of Recovery Amid Oversold Conditions

‎AVAXUSD Market Analysis – October 26

Avalanche continues to display overall bearish sentiment, though recent price behavior and oversold signals suggest that a short-term bullish correction may be underway.

‎Avalanche Key Levels

‎Support Levels: $28.00, $16.00
‎Resistance Levels: $41.40, $53.00

‎AVAXUSD Long-Term Trend: Bearish

‎Following a decisive breakdown below the $53.00 supply level, AVAXUSD experienced a significant bearish decline that extended toward the $16.00 demand zone. At this level, the market attempted a mild recovery, producing a temporary pullback that managed to reclaim the $28.00 zone.
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‎However, the bullish rebound was short-lived as price faced renewed selling pressure, triggering another sharp decline below the $28.00 level. This move marks the continuation of the prevailing bearish trend, with price now targeting the $16.00 demand area once again. Should this zone fail to hold, AVAXUSD could establish new record lows.
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‎Despite this dominant bearish outlook, the daily Relative Strength Index (RSI) has entered the oversold territory, indicating that selling momentum may be losing strength. A short-term bullish correction could therefore emerge, though any recovery is likely to remain capped below the $28.40 resistance level.

‎AVAXUSD Medium-Term Trend: Bullish

‎On the 4-hour timeframe, Avalanche has been forming a sequence of shallow lower lows, reflecting a controlled bearish structure. Recently, however, the price has begun to trade above the 4-hour Moving Average, signaling a potential shift in market sentiment toward bullishness.
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‎This emerging short-term bullish tone aligns with the daily oversold condition, suggesting the possibility of a corrective upswing before the broader bearish trend resumes. The 4-hour RSI further supports this view, as it gradually climbs toward the overbought region — an early indication of increasing buying interest.

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