AVAX Price Forecast: Is the Bearish Trend Set to Continue?

AVAX Price Forecast: Is a Short-Term Reversal Possible or Unlikely?

AVAX Price Forecast – In early March, Avalanche (AVAX) was expected to experience a 10% price bounce, but the anticipated downtrend persisted. This forecasted bearish scenario came to fruition, as the price continued to struggle. Within a week, AVAX fell to $15.2, following the earlier prediction of a drop to $14, reinforcing the pessimistic outlook.

Continued Selling Pressure and Resistance Zones

Despite the brief price drop, the demand for AVAX remained insufficient to reverse the ongoing downtrend. Overhead resistance zones, specifically in the $20-$21.7 range, have continued to suppress upward momentum. These levels are considered a bearish order block, where selling pressure has been prominent. The 20-period moving average (DMA) acted as a dynamic resistance point, with the price struggling to break above it in recent weeks. As of the latest data, the 20 DMA stands at $20.29, further validating the downward momentum.

High Volume and Downward Momentum

Trading volume during the decline has remained elevated, indicating strong selling pressure. The Fixed Range Volume Profile tool identified the $20.5-$22.1 area as a high-volume node, emphasizing the strength of the resistance in this zone. The Point of Control (POC) is located at $26.36, highlighting the importance of the price levels in maintaining the bearish trend.

Key Levels and Short-Term Outlook for AVAX

With the market structure still bearish, the most recent lower high was set at $24.95, with a daily close above this level required for a potential shift in trend. However, this remains unlikely in the near term. The Fibonacci retracement and extension levels suggest that the 23.6% extension level at $14.46 could be the next target if the downtrend continues.

Swing traders may consider targeting short-term price bounces near the $21 level with a take-profit at the $14.46 mark. However, the bearish scenario would be invalidated if the price manages to climb above $22.15.

As of now, AVAX continues its struggle within the ongoing bearish trajectory.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.