- The past month’s AVAX price action showed its downtrend was losing momentum
- It was unclear if the wider market would begin to recover in the coming months, and investors must temper their expectations
The 90-day tariff pause announcement by President Donald Trump eased selling pressure in the short term. Bitcoin [BTC] was up 7% from 24 hours ago, and Avalanche [AVAX] has made a 10.3% bounce.
The technical analysis showed that the downward pressure on Avalanche was not as strong as it was in January and February. A range formation and consolidation around $17 appeared possible.
Is Avalanche forming a long-term bottom?
Source: AVAX/USDT on TradingView
The 1-day chart showed that the bearish trend was still dominant, but it has been slowing down over the past month. The $15.27 level marked the March low, and the recent sell-off forced Avalanche to fall to $14.66 on Monday.
The fixed range volume profile was plotted from the start of the November rally. It showed that the upper and lower bounds of the value area (blue) were at $39.3 and $15.4, respectively. The Point of Control (red) was at $18.7 and currently served as resistance.
Therefore, AMBCrypto concluded that the $15-$17 range was likely to be a critical demand zone for Avalanche. If the price falls below $14.5, it could signal another leg downward.
On the other hand, if AVAX bulls continue to defend this region, there would be increased potential for recovery.
The slowdown in the bearish momentum came alongside AVAX bouncing between $15 and $23 in the past month. This range could mark the consolidation phase that follows the strong downtrend of the previous three months.
Source: Coinglass
The 30-day liquidation map showed that long liquidations outnumbered short liquidations and were positioned closer to the current price. It identified high-leverage liquidation levels at $18.18, $17.76, and $16.74 as short-term targets.
A potential dip to these levels to gather liquidity before a price rebound appears likely in the short term. Above $18.24, clusters at $19 and $20 serve as significant magnetic zones, indicating areas to monitor for a bearish reversal.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
