‎AVAX Eyes Short-Term Gains Amid Long-Term Bearish Structure Shift

AVAX Market Analysis – May 2nd

‎Avalanche (AVAX) is showing early signs of a bullish recovery, following a significant bearish break of structure earlier in 2025.

‎AVAXUSD Key Levels

‎Support Levels: $20.40, $13.20
‎Resistance Levels: $31.80, $44.50

‎AVAXUSD Long-Term Trend: Bearish

‎In the final quarter of 2024, AVAX maintained a bullish trajectory, forming a series of higher highs and climbing steadily. However, this upward momentum was sharply interrupted at the beginning of 2025, as the market reversed into a strong bearish trend. This downtrend pushed price below the critical $44.50 supply zone, forming lower lows and altering the broader market structure.
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‎The bearish momentum proved substantial enough to invalidate the previous bullish trend, causing a major structural shift. Initially perceived as a mere retracement, the decline breached the $20.40 demand zone and approached the $13.20 demand level before a reversal occurred. This reversal was fueled by the absorption of sell-side liquidity, enabling the bulls to regain temporary control and breach the descending trendline.
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‎Despite this bullish breakout above the bearish trendline, the overall market structure remains bearish. The major bearish break of structure continues to dominate the long-term outlook. The Relative Strength Index (RSI) on the daily chart now signals proximity to the overbought zone, suggesting that the current bullish crypto signal may be short-lived unless further confirmations of trend reversal emerge.

‎AVAXUSD Medium-Term Trend: Bullish

‎On the 4-hour chart, AVAX displays a clearer bullish structure. Price action has been characterized by the formation of higher highs, indicating recovery momentum and reclaiming territory above the $20.40 demand level. Following these gains, the market entered a brief pullback phase, forming what appears to be a bull flag pattern—a classic continuation formation.
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‎This minor consolidation broke slightly to the upside, hinting at a bullish continuation in the short term. If the pattern holds, AVAX is expected to climb further toward higher supply zones before potentially resuming its long-term bearish trend.

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