‎AVAXUSD Rebounds Strongly from $15.20 Demand Zone, Forms Double Bottom Pattern

‎Market Analysis – July 18

AVAXUSD Rebounds Strongly from $15.20 Demand Zone, Forms Double Bottom Pattern
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‎Avalanche has initiated a significant bullish reversal after bouncing from the $15.20 demand level.

‎AVAXUSD Key Levels

‎Support Levels: 22.00, $15.20
‎Resistance Levels: $27.50, $31.70

‎AVAXUSD Long-Term Trend: Bullish

‎Earlier in 2025, the asset experienced a bearish trend that saw price decline steadily. However, in early April, price reached the $15.20 level, where sellers failed to push further downward. This triggered a bullish rally that temporarily reclaimed the $22.00 zone. Despite this recovery, the bullish momentum was short-lived as price retraced once again toward the same $15.20 demand level.
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‎On this second approach to $15.20, price once again respected the demand zone, forming a double bottom pattern, a classic reversal signal. The pattern was followed by a bullish break of market structure, solidifying the long-term bullish outlook.
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‎Currently, AVAXUSD is trading near an overbought region on the daily Relative Strength Index (RSI), indicating a potential bearish retracement. A pullback toward the daily bullish order block is expected, which may offer renewed buying opportunities for long-term continuation.

‎AVAXUSD Medium-Term Trend: Bullish

‎The 4-hour chart reflects the ongoing bullish structure more clearly, with a series of higher highs and higher lows. However, similar to the daily chart, the 4-hour RSI shows overbought conditions, aligning with the expectation of a short-term retracement.
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‎Despite potential short-term bearish pressure, this is seen as a healthy correction within the broader bullish trend. Once price retraces into the 4-hour or daily order block, a continuation of the bullish expansion is likely, targeting new swing highs above the $22.00 level.

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