‎AVAX Bullish Recovery Faces Resistance as Price Eyes Daily Fair Value Gap

AVAXUSD Market Analysis – May 17‎

‎Avalanche (AVAXUSD) is showing signs of a significant bullish recovery as its price moves toward filling the daily Fair Value Gap (FVG). However, momentum appears to be weakening near key resistance levels.‎

AVAXUSD Key Levels‎

Support Levels: $27.00, $17.50
‎Resistance Levels: $37.80, $48.00

‎AVAXUSD Long-Term Trend: Bearish‎

‎On the daily chart, AVAXUSD has undergone a notable downward movement following a strong bullish phase earlier in the year. What was initially expected to be a normal retracement has developed into a deeper correction, as the price formed a new major low—breaking below the previous low established in August 2024. This shift has confirmed a broader bearish structure in the long-term outlook.
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‎Currently, AVAX is attempting to hold above the $17.50 demand level, having earlier breached the $27.00 demand zone. When price approached the $17.50 area, the daily Relative Strength Index (RSI) indicated oversold conditions crypto signals, which triggered a bullish reaction. This bounce has led the price toward the daily Fair Value Gap, with buyers aiming to fill it.
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‎However, recent price action suggests that momentum is stalling. The daily RSI now signals that AVAX is in overbought territory, and bearish pressure has emerged even before the FVG is fully filled. Despite this early pullback, the bullish trendline on the daily chart remains intact. As long as this trendline holds, the possibility of completing the Fair Value Gap remains on the table.

‎AVAXUSD Medium-Term Trend: Bullish

‎On the 4-hour timeframe, AVAX is currently experiencing a bearish reaction within the context of a short-term bullish trend. The bullish trendline continues to support price action, and the current retracement is moving toward this trendline.
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‎The 4-hour RSI offers a closer view of the market structure, revealing that AVAX is nearing oversold levels once again. This suggests that the bearish momentum may be approaching exhaustion, increasing the probability of a bullish continuation. If this support holds, it would enhance the likelihood of price pushing higher to fill the daily Fair Value Gap.

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