AVAX rebounds from recent lows, signaling short-term momentum shift
Avalanche (AVAX) recorded a 6% gain over the past 24 hours, rebounding from a recent sell-off and attracting renewed short-term buying interest. The move comes as AVAX holds above a critical demand area, suggesting traders are responding to improving momentum after weeks of downside pressure.
AVAX has staged a recovery from the near $11.30 support zone, an area that previously acted as a weak low before buyers stepped in. The bounce followed a sharp rejection to the downside, signaling short-term demand absorption after a sequence of lower lows.
Despite the recovery, the broader structure remains cautious. AVAX continues to trade below multiple overhead resistance zones between $13.80 and $15.20, areas previously marked by strong selling pressure. These zones align with prior breakdown levels, making them key hurdles for any sustained upside continuation.
Trading volume expanded during the rebound, indicating active participation from dip buyers rather than a low-liquidity bounce. However, volume has not yet reached levels typically associated with trend reversals, suggesting the current move may still be corrective within a larger downtrend.
If bullish momentum holds, AVAX may attempt a push toward the $13.50–$14.00 resistance range, where sellers are likely to re-enter. A rejection from this zone would reinforce the broader bearish structure. Conversely, a clean break and consolidation above $14 could open the door toward the $15 psychological level.
On the downside, failure to hold above $12.00 would put the recent lows back into focus and invalidate the short-term bullish attempt.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.